Gotham Gazette Gotham Gazette is an online publication covering New York policy and politics as well as news on public safety, transportation, education, finance and more. http://www.gothamgazette.com/component/tags/tag/economic-development-corporation 2018-09-26T07:28:15+00:00 Webmaster webmaster@gothamgazette.com Union Square Hub, with 600 Projected Tech Jobs, Appears on Smooth Path to Reality 2018-02-11T05:00:00+00:00 2018-02-11T05:00:00+00:00 http://www.gothamgazette.com/?id=7471:union-square-hub-with-600-projected-tech-jobs-appears-on-smooth-path-to-reality Ben Max <p><img src="http://www.gothamgazette.com/images/graphics/2017/union_square_tech_hub.jpeg" alt="union square tech hub" width="600" height="715" /></p> <p>Union Square tech hub rendering via the mayor's office</p> <hr /> <p>This past week, two Manhattan Community Board 3 committees voted to approve the city's application for the proposed Union Square Training Center, also known as the Union Square tech hub, which the de Blasio administration says will create 800 construction jobs and then 600 permanent jobs in the growing technology sector. The land use and economic development committees of CB3 opted not to condition their vote in favor of the proposal on rezoning several blocks south of the proposed project as the board had considered and some preservationists and long-time community members are fighting for.</p> <p>The non-binding community board vote to approve the project came on the heels of the New York City Economic Development Corporation (EDC) setting in motion the public review process, known as the Uniform Land-Use Review Procedure (ULURP), on January 29 by officially obtaining permission to move forward with the initial project design and chosen developer, RAL Companies &amp; Affiliates LLC. The clock will continue to tick on the roughly seven-month timeline that requires approval by the City Planning Commission and the City Council before any demolition or construction can take place in Union Square.</p> <p>The tech hub would serve as a state-of-the-art multi-purpose facility, with floors allocated to technology training and startup offices, as well as retail space, located on 14th Street between Third and Fourth Avenues. The building, which sits on valuable city-owned land, is currently a P.C. Richard &amp; Son. Community board approval, and without conditions, indicates that the project is almost certain to become a reality, though there are indeed still points of contention that will be negotiated over the coming months among local stakeholders, the de Blasio administration, and elected officials, especially City Council Member Carlina Rivera, who represents the area, and Manhattan Borough President Gale Brewer.</p> <p>According to EDC, the 240,000-square-foot, 21-floor facility would allocate six floors to <a href="https://civichall.org/" target="_blank" rel="noopener">Civic Hal</a>l -- three for digital skills training center, three for the company’s own operations as a center for tech innovation &nbsp;-- five for “flexible” office space, eight for larger office space, and the ground floor for retail and market space, 25 percent of which would be reserved for first-time entrepreneurs and new local businesses. EDC projects construction would cost $250 million and last 18 months, after which the building would be the third-tallest on the block, behind Zeckendorf Towers and the Consolidated Edison Building, and open for business sometime in the middle of 2020.</p> <p>The project is a component to Mayor Bill de Blasio’s “<a href="http://www1.nyc.gov/office-of-the-mayor/news/414-17/100-000-good-paying-jobs-mayor-de-blasio-releases-10-year-plan-invest-new-industries-raise#/0" target="_blank" rel="noopener">New York Works</a>” plan, a decade-long initiative to create 100,000 jobs, 30,000 of them coming from the technology sector, that pay salaries north of $50,000 annually. Currently, technology is the fastest-growing sector in New York City’s economy. Increasing jobs in the field has been a point of emphasis for de Blasio, continuing the Bloomberg administration’s prioritization of creating tech jobs in New York, as evidenced by his heading the effort to bring the Cornell Technion campus to Roosevelt Island. The city also says the project will serve those that might otherwise not have access to jobs in the technology sector.</p> <p>“This new hub will be the front-door for tech in New York City,” de Blasio said in a February 2017 press release announcing an outline of the project. “People searching for jobs, training or the resources to start a company will have a place to come to connect and get support. No other city in the nation has anything like it.”</p> <p>“One of the biggest priorities for the de Blasio administration when it comes to the the economy is really ensuring that there is access to tech jobs [and] that they are accessible to New Yorkers of all neighborhoods and backgrounds,” said Anthony Hogrebe, EDC senior vice president of Public Affairs, echoing de Blasio’s pitch for the tech hub, on a call with Gotham Gazette. “One of the biggest ways you do that is improving workforce development, and by helping folks get the skills they need to qualify for those jobs.”</p> <p>Hogrebe said the tech hub would “ensure tech jobs really are for all New Yorkers,” not solely for “those who have advanced degrees in computer science.”</p> <p>He emphasized the centrality of the space allocated to teaching technological skills. “The cornerstone of this project is the digital skills training center. This is a place where some of the top organizations from all over the city will train New Yorkers on how to do the jobs that are in demand and give New Yorkers the skills they need,” said Hogrebe.</p> <p>Most elected leaders, advocates and residents of the community are in favor of the proposal; they see it as a way to bring to the area jobs and educational opportunities that prepare people for job-rich fields. But some are pushing to include a concession in the deal: rezoning several blocks south of the hub in order to limit development.</p> <p>During her 2017 City Council campaign, then-candidate Carlina Rivera said she was open to the tech hub project as long as the city implemented protective zoning measures aimed at curbing commercial and residential development in the nearby areas. The de Blasio administration, on the other hand, has generally been less likely to favor down-zonings as it seeks to add housing density, with affordability provisions, across the city. It remains to be seen how hard Rivera will push for the restrictive measures, and it is telling that the community board did not insist on them despite some loud and organized voices who call them essential to the neighborhood’s future.</p> <p>In order to build the tech hub as planned, the lot in between two New York University-owned buildings -- University Hall and Palladium -- needs to be rezoned for additional height allowances. The rezoning must be approved through the five-step, roughly seven-month ULURP process. After the de Blasio administration put forward its ideas, solicited bids for the project via a request for proposals (RFP), and chose a developer, last month’s certification was the first hoop the proposal was required to jump through and this past Wednesday’s community board hearing was the second.</p> <p>Next, Manhattan Borough President Gale Brewer and the Borough Board, which includes community board leaders and City Council members from across the borough, will review the proposal. While they may influence the project, the opinions of the local community board and borough board are both advisory.</p> <p>However, the following steps, the City Planning Commission and the City Council, both have power to either approve or deny the tech hub project. In the coming months, the Council will hold committee hearings and subsequently vote on the matter -- the full Council approval of the project, in whatever exact form it is finalized, will likely occur around Labor Day. Usually, City Council members follow the lead of the member who represents the area home to a proposed rezoning, and there has been little to suggest this particular rezoning process will be a departure from the norm.</p> <p>New City Council Speaker Corey Johnson, who represents the area west of Union Square, said at a press conference on January 24 that he expects Rivera to helm negotiations with the de Blasio administration and trusts her judgement on the issue. “I defer to Council Member Rivera,” he said. “She has my full support and she knows that. She’s a pragmatic, thoughtful person who spent time on her local community board, who understands these issues, so I think she will handle this in a responsible, thoughtful way.”</p> <p>Additionally, Johnson indicated that he was sympathetic to the idea of rezoning the blocks south of Union Square to limit development. “I know that area. It’s right on the border of our district,” he said. “To me, I think it makes sense, knowing that area, seeing developments going on there.”</p> <p>At the Community Board 3 hearing on the matter, a slight majority of those who testified voiced support for the tech hub. They said it would bring jobs and educational opportunities to the area, though some in the pro-tech hub camp wanted confirmation from the EDC representatives in attendance that those from the local communities would reap the benefits of the new facility. Another faction, which skewed older, whiter, and included many long-time residents of the East and West Villages, expressed their concern the tech hub would spawn unwanted changes in the neighborhood if they didn’t fight for measures -- like more restrictive zoning on commercial development -- to thwart these shifts.</p> <p>After the tech hub is erected, one theory goes, more residential and commercial development -- such as luxury and market-rate apartment buildings, chain stores, and hotels -- would change the community character, make the surrounding areas less affordable to small businesses and unrecognizable to long-time residents. Rezoning the area, in the skeptics’ telling, would preserve affordability by forestalling a potential wave of development adjacent to the tech hub.</p> <p>Notably, many of the expressed qualms with the project sans an accompanying downzoning closely mirrored those voiced by <a href="http://www.gvshp.org/_gvshp/about/andrew-berman.htm" target="_blank" rel="noopener">Greenwich Village Society For Historic Preservation</a> (GVHSP), a community nonprofit that typically opposes development. In a press release following the project’s ULURP certification and ahead of the community board hearing, GVPA executive director Andrew Berman, who made his case to the community board Wednesday night, argued that if the “surrounding predominantly residential neighborhood” is not protected, the tech hub would “accelerate the transformation of the area.”</p> <p>Following over four hours of testimony and discussion, the community board committees voted 16 to 5 to approve the ULURP application without any condition.</p> <p>After Wednesday’s vote, Rivera said in a statement to Gotham Gazette that she will work with the local community board, the mayor, and stakeholders to construct a “plan that satisfies and includes everyone.”</p> <p>“This tech center has the potential to be a great space for the local residents who historically have not had access to the high-paying jobs of the tech industry, a field whose companies continue to grow in and around our neighborhoods,” Rivera continued.</p> <p>Rivera said she will ensure the impending construction of the tech hub does not encourage excessive commercial development, which she said would adversely impact nearby residents and small businesses. “I will also continue to work towards the protections and rezoning which have broad community support that promote the development of housing and projects that are in line with our values and residential character,” she stated.&nbsp; &nbsp;&nbsp;</p> <p>Berman, for his part, expressed displeasure with the community board’s process and decision. “By the narrowest of votes in which several of our supporters who should have been allowed to vote but were not given the opportunity to do so, a strong resolution incorporating all of our concerns was defeated for a weaker one incorporating some but not all of our concerns,” said Berman in a <a href="https://patch.com/new-york/east-village/east-village-tech-hub-clears-first-hurdle-public-review">statement to Patch</a>. He vowed to “keep working” to advocate for policies that ensure the neighborhood “gets the protections it deserves and needs."</p> <p>Needless to say, not all of those who participated in the hearing were disappointed with the outcome. Meghan Heintz of <a href="http://www.morenyc.org/" target="_blank" rel="noopener">More New York</a>, a group that advocates for policies that increase housing supply in the city, argued at the hearing that the tech hub was a boon to residents of nearby neighborhoods, and warned against the consequences of prohibitively restrictive zoning.</p> <p>Heintz was pleased with the board’s decision to approve the ULURP application.</p> <p>“Education and job training for the new economy is vital and should be accessible to people from all backgrounds and delaying it is the same as denying those benefits to New Yorkers. We staunchly oppose the exclusionary zoning proposal that NIMBYs from an adjacent neighborhood clumsily tried to tack onto the project,” she said Thursday in a statement to Gotham Gazette.</p> <p>Heintz added, “If their proposal could really stand on its own merits, they wouldn't need to try to take a great project hostage to pass it.”</p> <p>Along with the community advocates and stakeholders, New York University would also be impacted by the tech hub as the lot on which the new facility would be built is in between the two aforementioned NYU buildings. NYU spokesperson John Beckman said Wednesday that while the university has not had “direct involvement” in the project, the university supports “overall efforts to strengthen NYC's science, tech, and innovation economy” which includes the tech hub. “The Union Square Tech Hub is meant to advance NYC's tech economy, and that's an objective NYU supports,” he stated.</p> <p>Asked to evaluate the idea to downzone areas surrounding the planned tech hub during a call Tuesday, Regional Plan Association director of community planning and design Moses Gates said that though fears of displacement are legitimate, downzoning would not advance the preservationists’ goals. Gates said the proposed rezoning would only be good news for those who “don’t want to see any change in the neighborhood.”</p> <p>“I think a downzoning is not really in the community interest,” he said. “I don’t think it will release any kind of displacement pressures, which have been going on for decades at this point in the East Village.”</p> <p>Instead, Gates said, the city should build more housing in the transit-rich area while ensuring that a sufficient amount of it is affordable under Mandatory Inclusionary Housing (MIH) guidelines, which require affordable housing in any area or project that is upzoned to add housing density. “We should also be looking to get some mixed-income housing in a very upper-income and increasingly exclusionary neighborhood,” he said.</p> <p> </p> <p><img src="http://www.gothamgazette.com/images/graphics/2017/union_square_tech_hub.jpeg" alt="union square tech hub" width="600" height="715" /></p> <p>Union Square tech hub rendering via the mayor's office</p> <hr /> <p>This past week, two Manhattan Community Board 3 committees voted to approve the city's application for the proposed Union Square Training Center, also known as the Union Square tech hub, which the de Blasio administration says will create 800 construction jobs and then 600 permanent jobs in the growing technology sector. The land use and economic development committees of CB3 opted not to condition their vote in favor of the proposal on rezoning several blocks south of the proposed project as the board had considered and some preservationists and long-time community members are fighting for.</p> <p>The non-binding community board vote to approve the project came on the heels of the New York City Economic Development Corporation (EDC) setting in motion the public review process, known as the Uniform Land-Use Review Procedure (ULURP), on January 29 by officially obtaining permission to move forward with the initial project design and chosen developer, RAL Companies &amp; Affiliates LLC. The clock will continue to tick on the roughly seven-month timeline that requires approval by the City Planning Commission and the City Council before any demolition or construction can take place in Union Square.</p> <p>The tech hub would serve as a state-of-the-art multi-purpose facility, with floors allocated to technology training and startup offices, as well as retail space, located on 14th Street between Third and Fourth Avenues. The building, which sits on valuable city-owned land, is currently a P.C. Richard &amp; Son. Community board approval, and without conditions, indicates that the project is almost certain to become a reality, though there are indeed still points of contention that will be negotiated over the coming months among local stakeholders, the de Blasio administration, and elected officials, especially City Council Member Carlina Rivera, who represents the area, and Manhattan Borough President Gale Brewer.</p> <p>According to EDC, the 240,000-square-foot, 21-floor facility would allocate six floors to <a href="https://civichall.org/" target="_blank" rel="noopener">Civic Hal</a>l -- three for digital skills training center, three for the company’s own operations as a center for tech innovation &nbsp;-- five for “flexible” office space, eight for larger office space, and the ground floor for retail and market space, 25 percent of which would be reserved for first-time entrepreneurs and new local businesses. EDC projects construction would cost $250 million and last 18 months, after which the building would be the third-tallest on the block, behind Zeckendorf Towers and the Consolidated Edison Building, and open for business sometime in the middle of 2020.</p> <p>The project is a component to Mayor Bill de Blasio’s “<a href="http://www1.nyc.gov/office-of-the-mayor/news/414-17/100-000-good-paying-jobs-mayor-de-blasio-releases-10-year-plan-invest-new-industries-raise#/0" target="_blank" rel="noopener">New York Works</a>” plan, a decade-long initiative to create 100,000 jobs, 30,000 of them coming from the technology sector, that pay salaries north of $50,000 annually. Currently, technology is the fastest-growing sector in New York City’s economy. Increasing jobs in the field has been a point of emphasis for de Blasio, continuing the Bloomberg administration’s prioritization of creating tech jobs in New York, as evidenced by his heading the effort to bring the Cornell Technion campus to Roosevelt Island. The city also says the project will serve those that might otherwise not have access to jobs in the technology sector.</p> <p>“This new hub will be the front-door for tech in New York City,” de Blasio said in a February 2017 press release announcing an outline of the project. “People searching for jobs, training or the resources to start a company will have a place to come to connect and get support. No other city in the nation has anything like it.”</p> <p>“One of the biggest priorities for the de Blasio administration when it comes to the the economy is really ensuring that there is access to tech jobs [and] that they are accessible to New Yorkers of all neighborhoods and backgrounds,” said Anthony Hogrebe, EDC senior vice president of Public Affairs, echoing de Blasio’s pitch for the tech hub, on a call with Gotham Gazette. “One of the biggest ways you do that is improving workforce development, and by helping folks get the skills they need to qualify for those jobs.”</p> <p>Hogrebe said the tech hub would “ensure tech jobs really are for all New Yorkers,” not solely for “those who have advanced degrees in computer science.”</p> <p>He emphasized the centrality of the space allocated to teaching technological skills. “The cornerstone of this project is the digital skills training center. This is a place where some of the top organizations from all over the city will train New Yorkers on how to do the jobs that are in demand and give New Yorkers the skills they need,” said Hogrebe.</p> <p>Most elected leaders, advocates and residents of the community are in favor of the proposal; they see it as a way to bring to the area jobs and educational opportunities that prepare people for job-rich fields. But some are pushing to include a concession in the deal: rezoning several blocks south of the hub in order to limit development.</p> <p>During her 2017 City Council campaign, then-candidate Carlina Rivera said she was open to the tech hub project as long as the city implemented protective zoning measures aimed at curbing commercial and residential development in the nearby areas. The de Blasio administration, on the other hand, has generally been less likely to favor down-zonings as it seeks to add housing density, with affordability provisions, across the city. It remains to be seen how hard Rivera will push for the restrictive measures, and it is telling that the community board did not insist on them despite some loud and organized voices who call them essential to the neighborhood’s future.</p> <p>In order to build the tech hub as planned, the lot in between two New York University-owned buildings -- University Hall and Palladium -- needs to be rezoned for additional height allowances. The rezoning must be approved through the five-step, roughly seven-month ULURP process. After the de Blasio administration put forward its ideas, solicited bids for the project via a request for proposals (RFP), and chose a developer, last month’s certification was the first hoop the proposal was required to jump through and this past Wednesday’s community board hearing was the second.</p> <p>Next, Manhattan Borough President Gale Brewer and the Borough Board, which includes community board leaders and City Council members from across the borough, will review the proposal. While they may influence the project, the opinions of the local community board and borough board are both advisory.</p> <p>However, the following steps, the City Planning Commission and the City Council, both have power to either approve or deny the tech hub project. In the coming months, the Council will hold committee hearings and subsequently vote on the matter -- the full Council approval of the project, in whatever exact form it is finalized, will likely occur around Labor Day. Usually, City Council members follow the lead of the member who represents the area home to a proposed rezoning, and there has been little to suggest this particular rezoning process will be a departure from the norm.</p> <p>New City Council Speaker Corey Johnson, who represents the area west of Union Square, said at a press conference on January 24 that he expects Rivera to helm negotiations with the de Blasio administration and trusts her judgement on the issue. “I defer to Council Member Rivera,” he said. “She has my full support and she knows that. She’s a pragmatic, thoughtful person who spent time on her local community board, who understands these issues, so I think she will handle this in a responsible, thoughtful way.”</p> <p>Additionally, Johnson indicated that he was sympathetic to the idea of rezoning the blocks south of Union Square to limit development. “I know that area. It’s right on the border of our district,” he said. “To me, I think it makes sense, knowing that area, seeing developments going on there.”</p> <p>At the Community Board 3 hearing on the matter, a slight majority of those who testified voiced support for the tech hub. They said it would bring jobs and educational opportunities to the area, though some in the pro-tech hub camp wanted confirmation from the EDC representatives in attendance that those from the local communities would reap the benefits of the new facility. Another faction, which skewed older, whiter, and included many long-time residents of the East and West Villages, expressed their concern the tech hub would spawn unwanted changes in the neighborhood if they didn’t fight for measures -- like more restrictive zoning on commercial development -- to thwart these shifts.</p> <p>After the tech hub is erected, one theory goes, more residential and commercial development -- such as luxury and market-rate apartment buildings, chain stores, and hotels -- would change the community character, make the surrounding areas less affordable to small businesses and unrecognizable to long-time residents. Rezoning the area, in the skeptics’ telling, would preserve affordability by forestalling a potential wave of development adjacent to the tech hub.</p> <p>Notably, many of the expressed qualms with the project sans an accompanying downzoning closely mirrored those voiced by <a href="http://www.gvshp.org/_gvshp/about/andrew-berman.htm" target="_blank" rel="noopener">Greenwich Village Society For Historic Preservation</a> (GVHSP), a community nonprofit that typically opposes development. In a press release following the project’s ULURP certification and ahead of the community board hearing, GVPA executive director Andrew Berman, who made his case to the community board Wednesday night, argued that if the “surrounding predominantly residential neighborhood” is not protected, the tech hub would “accelerate the transformation of the area.”</p> <p>Following over four hours of testimony and discussion, the community board committees voted 16 to 5 to approve the ULURP application without any condition.</p> <p>After Wednesday’s vote, Rivera said in a statement to Gotham Gazette that she will work with the local community board, the mayor, and stakeholders to construct a “plan that satisfies and includes everyone.”</p> <p>“This tech center has the potential to be a great space for the local residents who historically have not had access to the high-paying jobs of the tech industry, a field whose companies continue to grow in and around our neighborhoods,” Rivera continued.</p> <p>Rivera said she will ensure the impending construction of the tech hub does not encourage excessive commercial development, which she said would adversely impact nearby residents and small businesses. “I will also continue to work towards the protections and rezoning which have broad community support that promote the development of housing and projects that are in line with our values and residential character,” she stated.&nbsp; &nbsp;&nbsp;</p> <p>Berman, for his part, expressed displeasure with the community board’s process and decision. “By the narrowest of votes in which several of our supporters who should have been allowed to vote but were not given the opportunity to do so, a strong resolution incorporating all of our concerns was defeated for a weaker one incorporating some but not all of our concerns,” said Berman in a <a href="https://patch.com/new-york/east-village/east-village-tech-hub-clears-first-hurdle-public-review">statement to Patch</a>. He vowed to “keep working” to advocate for policies that ensure the neighborhood “gets the protections it deserves and needs."</p> <p>Needless to say, not all of those who participated in the hearing were disappointed with the outcome. Meghan Heintz of <a href="http://www.morenyc.org/" target="_blank" rel="noopener">More New York</a>, a group that advocates for policies that increase housing supply in the city, argued at the hearing that the tech hub was a boon to residents of nearby neighborhoods, and warned against the consequences of prohibitively restrictive zoning.</p> <p>Heintz was pleased with the board’s decision to approve the ULURP application.</p> <p>“Education and job training for the new economy is vital and should be accessible to people from all backgrounds and delaying it is the same as denying those benefits to New Yorkers. We staunchly oppose the exclusionary zoning proposal that NIMBYs from an adjacent neighborhood clumsily tried to tack onto the project,” she said Thursday in a statement to Gotham Gazette.</p> <p>Heintz added, “If their proposal could really stand on its own merits, they wouldn't need to try to take a great project hostage to pass it.”</p> <p>Along with the community advocates and stakeholders, New York University would also be impacted by the tech hub as the lot on which the new facility would be built is in between the two aforementioned NYU buildings. NYU spokesperson John Beckman said Wednesday that while the university has not had “direct involvement” in the project, the university supports “overall efforts to strengthen NYC's science, tech, and innovation economy” which includes the tech hub. “The Union Square Tech Hub is meant to advance NYC's tech economy, and that's an objective NYU supports,” he stated.</p> <p>Asked to evaluate the idea to downzone areas surrounding the planned tech hub during a call Tuesday, Regional Plan Association director of community planning and design Moses Gates said that though fears of displacement are legitimate, downzoning would not advance the preservationists’ goals. Gates said the proposed rezoning would only be good news for those who “don’t want to see any change in the neighborhood.”</p> <p>“I think a downzoning is not really in the community interest,” he said. “I don’t think it will release any kind of displacement pressures, which have been going on for decades at this point in the East Village.”</p> <p>Instead, Gates said, the city should build more housing in the transit-rich area while ensuring that a sufficient amount of it is affordable under Mandatory Inclusionary Housing (MIH) guidelines, which require affordable housing in any area or project that is upzoned to add housing density. “We should also be looking to get some mixed-income housing in a very upper-income and increasingly exclusionary neighborhood,” he said.</p> <p> </p> What’s The [Data] Point? $3.2 Billion, with James Patchett 2018-01-12T05:00:00+00:00 2018-01-12T05:00:00+00:00 http://www.gothamgazette.com/?id=7417:what-s-the-data-point-3-2-billion-with-james-patchett Ben Max <p><img src="http://www.gothamgazette.com/images/graphics/2017/whats-the-data-point.jpg" alt="whats the data point" width="600" height="600" /></p> <hr /> <p><strong>What's The Data Point? Episode 26</strong><strong>&nbsp;-- $3.2 Billion, with James Patchett [You can download What's The [Data] Point? wherever you get your podcasts, including on iTunes] </strong></p> <p><img src="http://www.gothamgazette.com/images/graphics/2017/podcast/patchett-and-ben.jpg" alt="patchett and ben" width="277" height="143" style="margin-right: 10px; float: left;" /></p> <p>James Patchett is the President and CEO of the New York City Economic Development Corporation, the city's nonprofit arm dedicated to spurring job and industry growth, managing special projects, and implementing certain infrastructure projects. Patchett joined the podcast to discuss the City's development strategy, tax breaks, NYC Ferry, and the BQX streetcar project, and to respond to a new Citizens Budget Commission report evaluating the City's approach to economic development.</p> <p>Listen to the conversation and let us know what you think: Ben Max of GG (<a href="https://twitter.com/TweetBenMax" target="_blank" rel="noopener noreferrer">@TweetBenMax</a>), Maria Doulis of CBC (<a href="https://twitter.com/MariaDoulis" target="_blank" rel="noopener">@MariaDoulis</a>), and guest James Patchett (<a href="https://twitter.com/jbpatchett" target="_blank" rel="noopener">@jbpatchett</a>) of the Economic Development Corporation (<a href="https://twitter.com/NYCEDC" target="_blank" rel="noopener">@NYCEDC</a>). Listen below or download wherever you get your podcasts!</p> <p><iframe src="https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/382663361&amp;color=%23ff5500&amp;auto_play=false&amp;hide_related=false&amp;show_comments=true&amp;show_user=true&amp;show_reposts=false&amp;show_teaser=true" width="100%" height="170" frameborder="no" scrolling="no"></iframe></p> <p>

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by Ben Max, Gotham Gazette
     

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</p>
<p><img src="http://www.gothamgazette.com/images/graphics/2017/whats-the-data-point.jpg" alt="whats the data point" width="600" height="600" /></p> <hr /> <p><strong>What's The Data Point? Episode 26</strong><strong>&nbsp;-- $3.2 Billion, with James Patchett [You can download What's The [Data] Point? wherever you get your podcasts, including on iTunes] </strong></p> <p><img src="http://www.gothamgazette.com/images/graphics/2017/podcast/patchett-and-ben.jpg" alt="patchett and ben" width="277" height="143" style="margin-right: 10px; float: left;" /></p> <p>James Patchett is the President and CEO of the New York City Economic Development Corporation, the city's nonprofit arm dedicated to spurring job and industry growth, managing special projects, and implementing certain infrastructure projects. Patchett joined the podcast to discuss the City's development strategy, tax breaks, NYC Ferry, and the BQX streetcar project, and to respond to a new Citizens Budget Commission report evaluating the City's approach to economic development.</p> <p>Listen to the conversation and let us know what you think: Ben Max of GG (<a href="https://twitter.com/TweetBenMax" target="_blank" rel="noopener noreferrer">@TweetBenMax</a>), Maria Doulis of CBC (<a href="https://twitter.com/MariaDoulis" target="_blank" rel="noopener">@MariaDoulis</a>), and guest James Patchett (<a href="https://twitter.com/jbpatchett" target="_blank" rel="noopener">@jbpatchett</a>) of the Economic Development Corporation (<a href="https://twitter.com/NYCEDC" target="_blank" rel="noopener">@NYCEDC</a>). Listen below or download wherever you get your podcasts!</p> <p><iframe src="https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/382663361&amp;color=%23ff5500&amp;auto_play=false&amp;hide_related=false&amp;show_comments=true&amp;show_user=true&amp;show_reposts=false&amp;show_teaser=true" width="100%" height="170" frameborder="no" scrolling="no"></iframe></p> <p>

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by Ben Max, Gotham Gazette
     

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'Open Budget,' Economic Development Transparency Bills Become Law 2017-12-01T05:00:00+00:00 2017-12-01T05:00:00+00:00 http://www.gothamgazette.com/?id=7346:open-budget-economic-development-transparency-bills-become-law Ben Max <p><img src="http://www.gothamgazette.com/images/graphics/2017/reset_1/34230498096_8f776460b1_z.jpg" alt="de Blasio public hearing City Council bills" width="600" height="399" /></p> <p>De Blasio at a public hearing (photo: Ed Reed/Mayor's Office)</p> <hr /> <p>Four government transparency bills that were passed by the City Council on October 31 aged into law on Friday, having gone 30 days without any action in favor or against them by Mayor Bill de Blasio. The bills all relate to increased disclosure by the administration of billions in city government spending and have been praised by good government advocates.</p> <p>Among the bills was one that <a href="http://legistar.council.nyc.gov/LegislationDetail.aspx?ID=2709949&amp;GUID=A23CF8CE-1F3D-45FA-8C20-7A787B22EEE8&amp;Options=&amp;Search=">requires</a> the administration to publish annual budget documents in a user-friendly, machine-readable format to the city’s online Open Data Portal, allowing the public easier access to information that is currently listed in thousands of line items in the $86 billion city budget. The bill’s lead sponsor was Council Member Ben Kallos.</p> <p><a href="http://www.gothamgazette.com/city/7284-city-council-to-pass-bills-expanding-oversight-of-economic-development-spending" target="_blank" rel="noopener">The three other bills</a> -- with lead sponsors Council Members Helen Rosenthal, Dan Garodnick, and Corey Johnson -- formed a package aimed at improving transparency at the Economic Development Corporation, a city-run entity that manages and promotes the administration’s job-creation and business-development initiatives. The bills allow the City Council added oversight of EDC, which provides many millions of dollars in financial benefits to projects and businesses each year and also handles the sale and lease of city-owned land. They mandate that EDC provide fiscal impact statements and job creation estimates for projects receiving financial assistance; require EDC to detail their efforts to clawback funds from those agreements that fail to meet their goals; and allow the City Council time to review and comment on proposed economic development agreements.</p> <p>“These new City laws will make it much easier to understand both the big picture of how the City is spending money and the specifics of hundreds of millions of dollars in subsidy deals the City makes with businesses,” said John Kaehny, executive director of Reinvent Albany, a good government group, in a statement Friday. “It will be much easier to see if the taxpayer is getting a good deal. These new laws are a blueprint for what the state should do.”</p> <p>The City Charter provides that if the mayor takes no action on a bill after it is approved by the City Council, within 30 days, it automatically becomes law. In fact, it’s “pretty common” for bills to age into law without the mayor’s signature, said mayoral spokesperson Freddi Goldstein, in an email on Friday. She added that if the mayor signed every bill, “we’d be doing bill signings like every day.”&nbsp;&nbsp;</p> <p>Goldstein noted that out of the 25 bills passed by the Council on October 31, all but one aged into law. The only one the mayor signed was Council Member Rafael Espinal’s bill to repeal the city’s antiquated Cabaret Law, which used to require establishments to obtain licences from the city to allow dancing. De Blasio signed the bill on November 27 at Elsewhere, a popular nightclub in Brooklyn.</p> <p>Often, the mayor holds bill-signing ceremonies at City Hall, affixing his signature to numerous bills at a time. At one such ceremony on October 16, for instance, de Blasio signed a dozen bills into law. “It’s really just a timing thing,” Goldstein said in a later email, estimating that perhaps close to 100 bills have similarly lapsed into law in de Blasio’s first term.</p> <p>City Council spokesperson Robin Levine declined to comment for this article.</p> <p>

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by Samar Khurshid, City government reporter, Gotham Gazette
     

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</p>
<p><img src="http://www.gothamgazette.com/images/graphics/2017/reset_1/34230498096_8f776460b1_z.jpg" alt="de Blasio public hearing City Council bills" width="600" height="399" /></p> <p>De Blasio at a public hearing (photo: Ed Reed/Mayor's Office)</p> <hr /> <p>Four government transparency bills that were passed by the City Council on October 31 aged into law on Friday, having gone 30 days without any action in favor or against them by Mayor Bill de Blasio. The bills all relate to increased disclosure by the administration of billions in city government spending and have been praised by good government advocates.</p> <p>Among the bills was one that <a href="http://legistar.council.nyc.gov/LegislationDetail.aspx?ID=2709949&amp;GUID=A23CF8CE-1F3D-45FA-8C20-7A787B22EEE8&amp;Options=&amp;Search=">requires</a> the administration to publish annual budget documents in a user-friendly, machine-readable format to the city’s online Open Data Portal, allowing the public easier access to information that is currently listed in thousands of line items in the $86 billion city budget. The bill’s lead sponsor was Council Member Ben Kallos.</p> <p><a href="http://www.gothamgazette.com/city/7284-city-council-to-pass-bills-expanding-oversight-of-economic-development-spending" target="_blank" rel="noopener">The three other bills</a> -- with lead sponsors Council Members Helen Rosenthal, Dan Garodnick, and Corey Johnson -- formed a package aimed at improving transparency at the Economic Development Corporation, a city-run entity that manages and promotes the administration’s job-creation and business-development initiatives. The bills allow the City Council added oversight of EDC, which provides many millions of dollars in financial benefits to projects and businesses each year and also handles the sale and lease of city-owned land. They mandate that EDC provide fiscal impact statements and job creation estimates for projects receiving financial assistance; require EDC to detail their efforts to clawback funds from those agreements that fail to meet their goals; and allow the City Council time to review and comment on proposed economic development agreements.</p> <p>“These new City laws will make it much easier to understand both the big picture of how the City is spending money and the specifics of hundreds of millions of dollars in subsidy deals the City makes with businesses,” said John Kaehny, executive director of Reinvent Albany, a good government group, in a statement Friday. “It will be much easier to see if the taxpayer is getting a good deal. These new laws are a blueprint for what the state should do.”</p> <p>The City Charter provides that if the mayor takes no action on a bill after it is approved by the City Council, within 30 days, it automatically becomes law. In fact, it’s “pretty common” for bills to age into law without the mayor’s signature, said mayoral spokesperson Freddi Goldstein, in an email on Friday. She added that if the mayor signed every bill, “we’d be doing bill signings like every day.”&nbsp;&nbsp;</p> <p>Goldstein noted that out of the 25 bills passed by the Council on October 31, all but one aged into law. The only one the mayor signed was Council Member Rafael Espinal’s bill to repeal the city’s antiquated Cabaret Law, which used to require establishments to obtain licences from the city to allow dancing. De Blasio signed the bill on November 27 at Elsewhere, a popular nightclub in Brooklyn.</p> <p>Often, the mayor holds bill-signing ceremonies at City Hall, affixing his signature to numerous bills at a time. At one such ceremony on October 16, for instance, de Blasio signed a dozen bills into law. “It’s really just a timing thing,” Goldstein said in a later email, estimating that perhaps close to 100 bills have similarly lapsed into law in de Blasio’s first term.</p> <p>City Council spokesperson Robin Levine declined to comment for this article.</p> <p>

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by Samar Khurshid, City government reporter, Gotham Gazette
     

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Where the Mayor Opposes Affordable Housing and Neighborhood Character 2017-11-09T05:00:00+00:00 2017-11-09T05:00:00+00:00 http://www.gothamgazette.com/?id=7312:where-the-mayor-opposes-affordable-housing-and-neighborhood-character Ben Max <p><img src="http://www.gothamgazette.com/images/graphics/2017/reset_1/union_square_tech_hub_rendering1.jpg" alt="union square tech hub rendering1" width="600" height="548" /></p> <p>Union Square tech hub image rendering via EDC</p> <hr /> <p>Mayor de Blasio claims that creating and preserving affordable housing in our city is a top priority for his administration. But in Greenwich Village and the East Village, he has consistently blocked rezoning plans that would help create and preserve affordable housing where little exists, and opposed eliminating loopholes that aid developers, including his campaign fundraisers, in getting around existing affordable housing provisions.</p> <p>For over three years, we have asked the mayor to change zoning rules for the University Place and Broadway corridors in our neighborhood, where intense development is rapidly accelerating. Current zoning only allows luxury condos, hotels, and office buildings to be built there. As a result, a 300-foot-tall luxury condo tower has just topped out on 12th Street, with no affordable housing (under our rezoning plan, that development could have included 29,000 square feet or more of affordable housing). A slew of office towers catering to high-end firms are going up or being planned in the area at a similar scale, along with other luxury condo projects; we can only expect more of the same under the existing zoning.</p> <p>Our plan calls for switching to zoning of the type that exist in other neighborhoods which incentivizes the inclusion of affordable housing in new developments, or to make that inclusion mandatory. Our zoning plan would not fundamentally change the allowable overall size of new development, but would cap new building heights at about half that of these new out-of-scale towers, preserving neighborhood scale and character.</p> <p>Next door, along 3rd and 4th Avenues, we are seeking to close a loophole in the zoning for these blocks that allows developers to sidestep the existing incentives for creating affordable housing by building purely commercial buildings. That loophole recently resulted in the demolition of five modest walk-up apartment buildings with scores of housing units, many of them rent-regulated, to make way for a 300-room hotel being built by David Lichtenstein (founder and CEO of the Lightstone Group), who raised funds for the mayor and was appointed by the mayor to the Economic Development Corporation. Our zoning plan would cut the size of commercial developments in this predominantly residential neighborhood, so new development would almost certainly be residential and subject to the affordable housing incentives. Here too, those incentives could be made mandatory.</p> <p>The mayor’s response? A resounding “no.” In fact, until publicly confronted about this at a recent town hall, the mayor’s planning officials even refused to meet with us. The situation is made even more urgent by the plan by the mayor and his Economic Development Corporation to rezone a nearby site to create an enormous “tech hub.” Lacking the zoning protections we are calling for, this will only accelerate the rate of high-rise condo and commercial development in the nearby residential area, with no affordable housing (the proposed tech hub site had been earmarked for affordable housing years ago to boot).</p> <p>The mayor has a policy of only allowing rezonings that mandate affordable housing, for which there are strong arguments. What lacks any justification is the mayor’s insistence that such rezonings also allow vast increases in the allowable size and amount of new market-rate housing. Because our proposed rezoning does not, the mayor opposes it. But his way not only undermines the entire purpose of including affordable housing, by also flooding the area with much more high-end housing than would otherwise be built, but destroys the scale and character of neighborhoods at the same time. This is why so many communities across the city have resisted the mayor’s rezoning plans, while putting forward their own, much more reasonable ones.</p> <p>If the mayor has his way, this part of the Village and East Village will retain zoning that will only lead to a vast flood of out-of-scale condos, hotels, and upscale office towers, and miss opportunities to create or preserve affordable housing where it is sorely lacking.</p> <p>Under our plan, supported by every local elected official and community group, new development would have strong incentives or requirements to include affordable housing, and would remain in scale with the neighborhood without unduly taking building rights away from the developers.</p> <p>So, which side are you on, Mr. Mayor?</p> <p>***<br /> Andrew Berman is Executive Director of <a href="http://www.gvshp.org/_gvshp/index.htm" target="_blank" rel="noopener noreferrer">Greenwich Village Society for Historic Preservation</a>. On Twitter <a href="https://twitter.com/GVSHP" target="_blank" rel="noopener noreferrer">@GVSHP</a>.</p> <p>

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Have an op-ed idea or submission for Gotham Gazette? Email opinion@gothamgazette.com

</p>
<p><img src="http://www.gothamgazette.com/images/graphics/2017/reset_1/union_square_tech_hub_rendering1.jpg" alt="union square tech hub rendering1" width="600" height="548" /></p> <p>Union Square tech hub image rendering via EDC</p> <hr /> <p>Mayor de Blasio claims that creating and preserving affordable housing in our city is a top priority for his administration. But in Greenwich Village and the East Village, he has consistently blocked rezoning plans that would help create and preserve affordable housing where little exists, and opposed eliminating loopholes that aid developers, including his campaign fundraisers, in getting around existing affordable housing provisions.</p> <p>For over three years, we have asked the mayor to change zoning rules for the University Place and Broadway corridors in our neighborhood, where intense development is rapidly accelerating. Current zoning only allows luxury condos, hotels, and office buildings to be built there. As a result, a 300-foot-tall luxury condo tower has just topped out on 12th Street, with no affordable housing (under our rezoning plan, that development could have included 29,000 square feet or more of affordable housing). A slew of office towers catering to high-end firms are going up or being planned in the area at a similar scale, along with other luxury condo projects; we can only expect more of the same under the existing zoning.</p> <p>Our plan calls for switching to zoning of the type that exist in other neighborhoods which incentivizes the inclusion of affordable housing in new developments, or to make that inclusion mandatory. Our zoning plan would not fundamentally change the allowable overall size of new development, but would cap new building heights at about half that of these new out-of-scale towers, preserving neighborhood scale and character.</p> <p>Next door, along 3rd and 4th Avenues, we are seeking to close a loophole in the zoning for these blocks that allows developers to sidestep the existing incentives for creating affordable housing by building purely commercial buildings. That loophole recently resulted in the demolition of five modest walk-up apartment buildings with scores of housing units, many of them rent-regulated, to make way for a 300-room hotel being built by David Lichtenstein (founder and CEO of the Lightstone Group), who raised funds for the mayor and was appointed by the mayor to the Economic Development Corporation. Our zoning plan would cut the size of commercial developments in this predominantly residential neighborhood, so new development would almost certainly be residential and subject to the affordable housing incentives. Here too, those incentives could be made mandatory.</p> <p>The mayor’s response? A resounding “no.” In fact, until publicly confronted about this at a recent town hall, the mayor’s planning officials even refused to meet with us. The situation is made even more urgent by the plan by the mayor and his Economic Development Corporation to rezone a nearby site to create an enormous “tech hub.” Lacking the zoning protections we are calling for, this will only accelerate the rate of high-rise condo and commercial development in the nearby residential area, with no affordable housing (the proposed tech hub site had been earmarked for affordable housing years ago to boot).</p> <p>The mayor has a policy of only allowing rezonings that mandate affordable housing, for which there are strong arguments. What lacks any justification is the mayor’s insistence that such rezonings also allow vast increases in the allowable size and amount of new market-rate housing. Because our proposed rezoning does not, the mayor opposes it. But his way not only undermines the entire purpose of including affordable housing, by also flooding the area with much more high-end housing than would otherwise be built, but destroys the scale and character of neighborhoods at the same time. This is why so many communities across the city have resisted the mayor’s rezoning plans, while putting forward their own, much more reasonable ones.</p> <p>If the mayor has his way, this part of the Village and East Village will retain zoning that will only lead to a vast flood of out-of-scale condos, hotels, and upscale office towers, and miss opportunities to create or preserve affordable housing where it is sorely lacking.</p> <p>Under our plan, supported by every local elected official and community group, new development would have strong incentives or requirements to include affordable housing, and would remain in scale with the neighborhood without unduly taking building rights away from the developers.</p> <p>So, which side are you on, Mr. Mayor?</p> <p>***<br /> Andrew Berman is Executive Director of <a href="http://www.gvshp.org/_gvshp/index.htm" target="_blank" rel="noopener noreferrer">Greenwich Village Society for Historic Preservation</a>. On Twitter <a href="https://twitter.com/GVSHP" target="_blank" rel="noopener noreferrer">@GVSHP</a>.</p> <p>

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Have an op-ed idea or submission for Gotham Gazette? Email opinion@gothamgazette.com

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What's The [DATA] Point? 348 and 74 2017-11-02T04:00:00+00:00 2017-11-02T04:00:00+00:00 http://www.gothamgazette.com/?id=7293:what-s-the-data-point-348-and-74 Ben Max <p><img src="http://www.gothamgazette.com/images/graphics/2017/whats-the-data-point.jpg" alt="whats the data point" width="600" height="600" /></p> <hr /> <p><strong>What's The Data Point? Episode 18</strong><strong> -- 348 and 74 [You can download What's The [Data] Point? wherever you get your podcasts, including on iTunes] </strong></p> <p><img src="http://www.gothamgazette.com/images/graphics/2017/podcast/348-74-277.jpg" alt="348 74 277" width="277" height="143" style="margin-right: 10px; float: left;" /></p> <p>This week's data points are 348 and 74 as we bring you a two-part show, each featuring the author of a new CBC report out this week.</p> <p>348 is the number of Local Development Corporations and Industrial Development Agencies in New York State. These corporations, created by local governments throughout the state, are intended to help spur economic development. But, are they effective? Riley Edwards, the principal author of "Opaque and Duplicative - Local Economic Development in New York State" discusses.</p> <p>Then: 74 is the number of Business Improvement Districts in New York City. Are BIDs effective? Are they transparent? Tim Sullivan, author of CBC report "BIDS - Oversight, Organization and Transparency" discusses.</p> <p>Listen to the conversation and let us know what you think: Ben Max of GG (<a href="https://twitter.com/TweetBenMax" target="_blank" rel="noopener noreferrer">@TweetBenMax</a>), Carol Kellerman of CBC (<a href="https://twitter.com/cbcny">@cbcny</a>), and guests Riley Edwards and Tim Sullivan of CBC. Listen below or download wherever you get your podcasts!</p> <p><iframe src="https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/350284822&amp;color=%23ff5500&amp;auto_play=false&amp;hide_related=false&amp;show_comments=true&amp;show_user=true&amp;show_reposts=false&amp;show_teaser=true" width="100%" height="170" frameborder="no" scrolling="no"></iframe></p> <p>

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by Ben Max, Gotham Gazette
     

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<p><img src="http://www.gothamgazette.com/images/graphics/2017/whats-the-data-point.jpg" alt="whats the data point" width="600" height="600" /></p> <hr /> <p><strong>What's The Data Point? Episode 18</strong><strong> -- 348 and 74 [You can download What's The [Data] Point? wherever you get your podcasts, including on iTunes] </strong></p> <p><img src="http://www.gothamgazette.com/images/graphics/2017/podcast/348-74-277.jpg" alt="348 74 277" width="277" height="143" style="margin-right: 10px; float: left;" /></p> <p>This week's data points are 348 and 74 as we bring you a two-part show, each featuring the author of a new CBC report out this week.</p> <p>348 is the number of Local Development Corporations and Industrial Development Agencies in New York State. These corporations, created by local governments throughout the state, are intended to help spur economic development. But, are they effective? Riley Edwards, the principal author of "Opaque and Duplicative - Local Economic Development in New York State" discusses.</p> <p>Then: 74 is the number of Business Improvement Districts in New York City. Are BIDs effective? Are they transparent? Tim Sullivan, author of CBC report "BIDS - Oversight, Organization and Transparency" discusses.</p> <p>Listen to the conversation and let us know what you think: Ben Max of GG (<a href="https://twitter.com/TweetBenMax" target="_blank" rel="noopener noreferrer">@TweetBenMax</a>), Carol Kellerman of CBC (<a href="https://twitter.com/cbcny">@cbcny</a>), and guests Riley Edwards and Tim Sullivan of CBC. Listen below or download wherever you get your podcasts!</p> <p><iframe src="https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/350284822&amp;color=%23ff5500&amp;auto_play=false&amp;hide_related=false&amp;show_comments=true&amp;show_user=true&amp;show_reposts=false&amp;show_teaser=true" width="100%" height="170" frameborder="no" scrolling="no"></iframe></p> <p>

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by Ben Max, Gotham Gazette
     

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City Council Passes Bills Expanding Oversight of Economic Development Spending 2017-10-30T04:00:00+00:00 2017-10-30T04:00:00+00:00 http://www.gothamgazette.com/?id=7284:city-council-to-pass-bills-expanding-oversight-of-economic-development-spending Ben Max <p><img src="http://www.gothamgazette.com/images/dmw7vyeuqaayxfq.jpg-large.jpeg" alt="dmw7vyeuqaayxfq.jpg large" width="600" height="354" /></p> <p>CM Garodnick speaks at a groundbreaking ceremony (photo via @DanGarodnick)</p> <hr /> <p><em>[editor's note: the bills discussed in this story have passed the Council since its publish; the headline has been tweaked to indicate that fact, but the story remains unchanged from its publish]</em></p> <p>The New York City Council is set to pass a package of three bills that will expand its oversight of the New York City Economic Development Corporation, a city-affiliated non-profit that is instrumental in the city’s efforts to stimulate business and create jobs.</p> <p>The EDC handles a wide array of projects and initiatives from infrastructure and real estate development to cultural projects and parks and public spaces. The organization’s work is at the center of Mayor Bill de Blasio’s plan to create 100,000 jobs over ten years that pay $50,000 annually, and it recently led the process for the city’s bid to host the second headquarters of retail giant Amazon. Hundreds of projects receive financial assistance each year from the city through EDC in the form of tax benefits, loans, grants, and even energy benefits</p> <p>But as of now, EDC is required to report little publicly about its operations and the benefits of its work to the city and New Yorkers. The City Council bills being passed this week, which are expected to be signed into law by the mayor, seek to increase those reporting requirements to add a layer of accountability and transparency to EDC’s work.</p> <p>“We spend an extraordinary sum every year on economic development and the goals are laudable: creation of jobs, the expansion of affordable housing or even the refurbishing of important cultural or historical sites,” said City Council Member Daniel Garodnick, chair of the economic development committee and prime sponsor of one of the three bills in the package, in a phone interview. “But, unfortunately it’s not always clear whether these dollars achieve their intended objectives.”</p> <p>Garodnick’s <a href="http://legistar.council.nyc.gov/LegislationDetail.aspx?ID=2867851&amp;GUID=FBAD71D2-798D-4D08-9650-B9786389121A&amp;Options=&amp;Search=" target="_blank" rel="noopener noreferrer">bill</a> would require the EDC to provide fiscal impact statements for projects it sponsors, including estimates of the number of jobs being created. Another <a href="http://legistar.council.nyc.gov/LegislationDetail.aspx?ID=2867854&amp;GUID=9F91E653-ED3B-40EF-B20B-9FE099116853&amp;Options=&amp;Search=" target="_blank" rel="noopener noreferrer">bill</a>, sponsored by Council Member Corey Johnson, would require EDC to report on its efforts to recover funds from any third party that received financial assistance but failed to live up to an economic development agreement. The <a href="http://legistar.council.nyc.gov/LegislationDetail.aspx?ID=2867876&amp;GUID=94241FF8-9F73-42A7-97B5-65380D2E7E6E&amp;Options=&amp;Search=" target="_blank" rel="noopener noreferrer">third bill</a>, sponsored by Council Member Helen Rosenthal, would give the City Council an opportunity to comment on proposed economic development agreements by mandating that EDC provide project descriptions and budgets to the Council at least 30 days before the agreement is finalized. &nbsp;</p> <p>The three bills build on Garodnick’s efforts that he began in 2014 to improve oversight of EDC and how it utilizes taxpayer money. Last year, Garodnick and Council Member Julissa Ferreras-Copeland, the Council’s finance chair, led a task force to examine the city’s economic development tax expenditures. The task force issued 10 <a href="https://www.politico.com/states/f/?id=00000157-4f76-dc77-a5ff-cfffa4040001" target="_blank" rel="noopener noreferrer">recommendations</a> including instituting regular reviews of tax expenditures and improved oversight. The three bills being passed on Wednesday were an outcome of those recommendations.</p> <p>“Through these bills, EDC will provide comprehensive fiscal impact statements and enhanced compliance reports for projects that receive our financial assistance,” said Shavone Williams, an EDC spokesperson, in a statement. “We look forward to this collaboration with the City Council as part of our larger efforts to remain as transparent as possible to the communities we serve.”</p> <p>Support from EDC indicates the mayor will sign into laws the bills, which have passed through Garodnick’s committee and will be voted on by the full City Council on Tuesday.</p> <p>Garodnick did acknowledge that EDC has improved its processes and that it already provides some information annually on its projects as required under city and state law. EDC puts out an Annual Investments Projects Report, in three volumes, on projects that receive financial assistance and details of the sales and leases of city-land. The <a href="https://www.nycedc.com/sites/default/files/filemanager/CityCharter_2016_Vol_I.pdf" target="_blank" rel="noopener noreferrer">last report</a>, issued January 30, notes that EDC provided some form of financial assistance to 554 projects in fiscal year 2016. The report included information on 46 sales of city-land that brought in $536.1 million and 89 leases of city-owned land with rents worth $126.1 million.</p> <p>The 554 projects accounted for 5.9 percent of the total private employment in the city; about $36.1 billion in private investment; they cost the city about $138 million in fiscal year 2016 (totalling $1.8 billion over the life of the projects) and brought in $5.2 billion in tax revenue (estimated to grow to $50.3 billion over the life of the projects).</p> <p>“I felt that more could be done to ensure that the public has a handle on how we are spending our money here and we want to give the public better access to this information,” said Garodnick, who is leaving the Council at the end of the year due to term limits. “We want to go further and be able to measure the upfront goals with the outcomes.”</p> <p>Indeed, in the context of numerous neighborhood rezonings proposed by the de Blasio administration across the city, advocacy groups have consistently called for more rigorous scrutiny of promises made by the city and keeping developers accountable if they receive any benefits from the administration. This also applies to singular projects, including the prominent example of the Bedford Union Armory redevelopment, a process that was spearheaded by EDC. The project is on city land but proposes a long-term lease to a private developer, raising concerns among community advocates.</p> <p>“There is a natural tension here between the need to activate economic development measures and local community perspectives,” Garodnick said, when Gotham Gazette ventured whether increased oversight was necessary in the aftermath of the Bloomberg years, when development went largely unchecked. “And part of this is ensuring that local needs are considered and that’s really what the Rosenthal bill is about. This is a very important agency that spends an extraordinary amount of money which does a lot of good work. We want to add these oversight measures to ensure the greatest transparency of taxpayer dollars.”</p> <p>Garodnick also agreed that there’s a need to ensure that the mayor’s plan to invest in burgeoning economic sectors to directly create 100,000 jobs receives the appropriate scrutiny. “This would always be important but with the commitment that is being made to find ways to create economic opportunities, this is even more important,” he said.</p> <p>

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by Samar Khurshid, City government reporter, Gotham Gazette
     

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</p>
<p><img src="http://www.gothamgazette.com/images/dmw7vyeuqaayxfq.jpg-large.jpeg" alt="dmw7vyeuqaayxfq.jpg large" width="600" height="354" /></p> <p>CM Garodnick speaks at a groundbreaking ceremony (photo via @DanGarodnick)</p> <hr /> <p><em>[editor's note: the bills discussed in this story have passed the Council since its publish; the headline has been tweaked to indicate that fact, but the story remains unchanged from its publish]</em></p> <p>The New York City Council is set to pass a package of three bills that will expand its oversight of the New York City Economic Development Corporation, a city-affiliated non-profit that is instrumental in the city’s efforts to stimulate business and create jobs.</p> <p>The EDC handles a wide array of projects and initiatives from infrastructure and real estate development to cultural projects and parks and public spaces. The organization’s work is at the center of Mayor Bill de Blasio’s plan to create 100,000 jobs over ten years that pay $50,000 annually, and it recently led the process for the city’s bid to host the second headquarters of retail giant Amazon. Hundreds of projects receive financial assistance each year from the city through EDC in the form of tax benefits, loans, grants, and even energy benefits</p> <p>But as of now, EDC is required to report little publicly about its operations and the benefits of its work to the city and New Yorkers. The City Council bills being passed this week, which are expected to be signed into law by the mayor, seek to increase those reporting requirements to add a layer of accountability and transparency to EDC’s work.</p> <p>“We spend an extraordinary sum every year on economic development and the goals are laudable: creation of jobs, the expansion of affordable housing or even the refurbishing of important cultural or historical sites,” said City Council Member Daniel Garodnick, chair of the economic development committee and prime sponsor of one of the three bills in the package, in a phone interview. “But, unfortunately it’s not always clear whether these dollars achieve their intended objectives.”</p> <p>Garodnick’s <a href="http://legistar.council.nyc.gov/LegislationDetail.aspx?ID=2867851&amp;GUID=FBAD71D2-798D-4D08-9650-B9786389121A&amp;Options=&amp;Search=" target="_blank" rel="noopener noreferrer">bill</a> would require the EDC to provide fiscal impact statements for projects it sponsors, including estimates of the number of jobs being created. Another <a href="http://legistar.council.nyc.gov/LegislationDetail.aspx?ID=2867854&amp;GUID=9F91E653-ED3B-40EF-B20B-9FE099116853&amp;Options=&amp;Search=" target="_blank" rel="noopener noreferrer">bill</a>, sponsored by Council Member Corey Johnson, would require EDC to report on its efforts to recover funds from any third party that received financial assistance but failed to live up to an economic development agreement. The <a href="http://legistar.council.nyc.gov/LegislationDetail.aspx?ID=2867876&amp;GUID=94241FF8-9F73-42A7-97B5-65380D2E7E6E&amp;Options=&amp;Search=" target="_blank" rel="noopener noreferrer">third bill</a>, sponsored by Council Member Helen Rosenthal, would give the City Council an opportunity to comment on proposed economic development agreements by mandating that EDC provide project descriptions and budgets to the Council at least 30 days before the agreement is finalized. &nbsp;</p> <p>The three bills build on Garodnick’s efforts that he began in 2014 to improve oversight of EDC and how it utilizes taxpayer money. Last year, Garodnick and Council Member Julissa Ferreras-Copeland, the Council’s finance chair, led a task force to examine the city’s economic development tax expenditures. The task force issued 10 <a href="https://www.politico.com/states/f/?id=00000157-4f76-dc77-a5ff-cfffa4040001" target="_blank" rel="noopener noreferrer">recommendations</a> including instituting regular reviews of tax expenditures and improved oversight. The three bills being passed on Wednesday were an outcome of those recommendations.</p> <p>“Through these bills, EDC will provide comprehensive fiscal impact statements and enhanced compliance reports for projects that receive our financial assistance,” said Shavone Williams, an EDC spokesperson, in a statement. “We look forward to this collaboration with the City Council as part of our larger efforts to remain as transparent as possible to the communities we serve.”</p> <p>Support from EDC indicates the mayor will sign into laws the bills, which have passed through Garodnick’s committee and will be voted on by the full City Council on Tuesday.</p> <p>Garodnick did acknowledge that EDC has improved its processes and that it already provides some information annually on its projects as required under city and state law. EDC puts out an Annual Investments Projects Report, in three volumes, on projects that receive financial assistance and details of the sales and leases of city-land. The <a href="https://www.nycedc.com/sites/default/files/filemanager/CityCharter_2016_Vol_I.pdf" target="_blank" rel="noopener noreferrer">last report</a>, issued January 30, notes that EDC provided some form of financial assistance to 554 projects in fiscal year 2016. The report included information on 46 sales of city-land that brought in $536.1 million and 89 leases of city-owned land with rents worth $126.1 million.</p> <p>The 554 projects accounted for 5.9 percent of the total private employment in the city; about $36.1 billion in private investment; they cost the city about $138 million in fiscal year 2016 (totalling $1.8 billion over the life of the projects) and brought in $5.2 billion in tax revenue (estimated to grow to $50.3 billion over the life of the projects).</p> <p>“I felt that more could be done to ensure that the public has a handle on how we are spending our money here and we want to give the public better access to this information,” said Garodnick, who is leaving the Council at the end of the year due to term limits. “We want to go further and be able to measure the upfront goals with the outcomes.”</p> <p>Indeed, in the context of numerous neighborhood rezonings proposed by the de Blasio administration across the city, advocacy groups have consistently called for more rigorous scrutiny of promises made by the city and keeping developers accountable if they receive any benefits from the administration. This also applies to singular projects, including the prominent example of the Bedford Union Armory redevelopment, a process that was spearheaded by EDC. The project is on city land but proposes a long-term lease to a private developer, raising concerns among community advocates.</p> <p>“There is a natural tension here between the need to activate economic development measures and local community perspectives,” Garodnick said, when Gotham Gazette ventured whether increased oversight was necessary in the aftermath of the Bloomberg years, when development went largely unchecked. “And part of this is ensuring that local needs are considered and that’s really what the Rosenthal bill is about. This is a very important agency that spends an extraordinary amount of money which does a lot of good work. We want to add these oversight measures to ensure the greatest transparency of taxpayer dollars.”</p> <p>Garodnick also agreed that there’s a need to ensure that the mayor’s plan to invest in burgeoning economic sectors to directly create 100,000 jobs receives the appropriate scrutiny. “This would always be important but with the commitment that is being made to find ways to create economic opportunities, this is even more important,” he said.</p> <p>

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by Samar Khurshid, City government reporter, Gotham Gazette
     

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</p>
Top City Electeds Skip Letter Wooing Amazon 2017-10-19T04:00:00+00:00 2017-10-19T04:00:00+00:00 http://www.gothamgazette.com/?id=7266:top-city-electeds-skip-letter-wooing-amazon Ben Max <p><img src="http://www.gothamgazette.com/images/graphics/2017/wtc-orange-amazon-via-edc.jpg" alt="wtc orange amazon via edc" width="600" height="400" /></p> <p>One World Trade Center lit up orange for Amazon (photo via NYC EDC)</p> <hr /> <p>New York is laying out the red carpet to entice online retail giant Amazon to locate its new corporate headquarters in the state. Governor Andrew Cuomo promised a slew of incentives to support four official proposals from different regions that were submitted to the company on Wednesday, and New York City Mayor Bill de Blasio lit up the city in orange at night as a fawning branding appeal.</p> <p>New York City’s own <a href="https://www.dropbox.com/s/omgt5ywmgzundkv/Amazon%20Deck%20for%20Press%20-%2010.18.2017.pdf?dl=0&amp;utm_source=Press+Release&amp;utm_campaign=5db591fe9c-2017_10_18_NYC_Submits_Amazon_Proposal_PA&amp;utm_medium=email&amp;utm_term=0_b804b7ba34-5db591fe9c-102476565" target="_blank" rel="noopener noreferrer">bid</a> -- which included four possible business districts -- was backed by about 70 elected officials that represent the city, including members of Congress, state Senators and Assembly members, City Council members, borough presidents, and Public Advocate Letitia James. But at least four notable elected officials were conspicuously absent from the letter of support sent by the mayor’s office to Amazon CEO Jeff Bezos.</p> <p>Assembly Speaker Carl Heastie, of the Bronx, City Comptroller Scott Stringer, and City Council Members Corey Johnson and Donovan Richards, both contenders to become the next Speaker of the City Council, did not sign on to the letter.</p> <p>“No city embodies the American traditions of innovation and creativity quite like New York City,” <a href="https://www.dropbox.com/s/fa1bvw2m82molqv/Amazon%20Elected%20Letter.pdf?dl=0&amp;utm_source=Press+Release&amp;utm_campaign=5db591fe9c-2017_10_18_NYC_Submits_Amazon_Proposal_PA&amp;utm_medium=email&amp;utm_term=0_b804b7ba34-5db591fe9c-102476565" target="_blank" rel="noopener noreferrer">the letter</a> reads. “It has transformed from a Dutch settlement, to the nation’s first capital, to a booming industrial center. It became a port of hope for millions of immigrants looking for a better life, and a model for urban revitalization. From Broadway, the Bronx Zoo and the Brooklyn Bridge, to Citi Field and the shores of Staten Island, New York City is a place where history is made every day. Our tradition of reinvention matches yours, and we invite you to join us in writing our next chapters together.”</p> <p>A spokesperson for Stringer declined to comment. Multiple messages and emails sent to spokespeople for Heastie were not returned.</p> <p>“We’re excited about the prospect of new businesses coming to New York City,” said Jordan Gibbons, a spokesperson for Council Member Richards, “but before we support the plan, we need more information about job standards and impact on local businesses.”</p> <p>Council Member Johnson wrote in a text that he “didn’t sign on to [the] letter because I have concerns about Amazon’s labor record but also recognize 50K jobs would be good for the city.” &nbsp;</p> <p>As Johnson noted, Amazon’s second headquarters is expected to create 50,000 jobs and bring in roughly $5 billion in investment. One of the proposed areas for Amazon’s headquarters, Midtown West, falls in Johnson’s Manhattan district. City Council members representing other proposed sites for the headquarters signed on to the letter.</p> <p>Amazon’s announcement and request for proposals triggered a mad dash by dozens of cities across the country to lure the multi-billion-dollar company. To bolster their bids, some cities and states have promised enormous tax breaks while others have pledged infrastructure investments around a potential Amazon campus. Most have hedged their bets on being able to provide the optimum balance of tech talent, affordable and ample real estate, and an appealing quality of life. One municipality in Georgia even went so far as to <a href="https://www.usatoday.com/story/tech/news/2017/10/03/city-aims-name-new-town-company-amazon-georgia/727765001/" target="_blank" rel="noopener noreferrer">propose</a> creating an entirely new city named for the online retailer.</p> <p>Short of naming a new business district after Amazon, New York City’s pitch includes all those aspects. Culled from more than two dozen proposals from across the five boroughs, the New York City Economic Development Corporation, in collaboration with the Empire State Development Corporation, decided on four city areas that met Amazon’s criteria -- Midtown West, Long Island City, Lower Manhattan, and the Brooklyn Tech Triangle. The city is banking on many factors, including its pool of 2.3 million residents who hold a bachelor’s degree and above -- a number higher than the combined comparable workforce of Boston, Philadelphia, San Francisco, Los Angeles and Washington D.C.</p> <p>The city has 296,000 workers in the tech industry and is growing rapidly in sectors of the economy where Amazon is diversifying, including media, advertising, fashion, and manufacturing.</p> <p>And the city is already an attractive destination for Amazon, which has a distribution and fulfillment center, corporate offices and retail space in the city with plans to expand in Manhattan. Amazon’s website says it has 1,000 employees in New York, plus seasonal additions around the winter holidays.</p> <p>An EDC spokesperson said the city cast a wide net seeking support for the proposal. “Considering how hard it is to get New Yorkers to agree on anything, the fact that we got so many signatures in such a short time was pretty impressive and overwhelming,” the spokesperson said, expressing optimism that New York would outmatch other cities with its bid.</p> <p>Asked at an unrelated Thursday news conference about his pursuit of Amazon when he has been opposed to Walmart opening in the city, de Blasio called it “apples and oranges.” “Amazon, there are some issues that need to be addressed with labor, there’s no two ways about it. But, at the same time, this is a company talking about potentially fundamentally changing the economy in New York City. Adding 50,000 jobs is a game-changer. And it’s something we need and we need more high-quality jobs for the people of New York City. So we can work on those labor issues and I’m happy to work on those labor issues, but no, I’m convinced that Amazon will be a net gain for New York City, unquestionably.”</p> <p>Responding to Johnson’s concerns, the EDC spokesperson said that Amazon’s presence in New York would afford the city an opportunity to engage directly with the firm and “work with them to advance our shared values.” Pointing out that it was premature to evaluate a deal that hasn’t yet been approved, the spokesperson said the city would be able to negotiate down the line to add guarantees to ensure the number of jobs created, salary levels and that jobs go to New Yorkers. “It’s pretty clear to us that they want to build the headquarters with the community, not in the community,” the spokesperson said.</p> <p>“It’s puzzling, I don’t know why you’d want to turn down a shot at 50,000 good-paying jobs,” said Jonathan Bowles, executive director of the Center for an Urban Future, when asked why leaders like Stringer, Heastie, and Johnson would not sign on. He conceded that concerns about corporate subsidies are valid, but that the Amazon opportunity is too good to pass up. “It’s a big win for New York City if we can get it.”</p> <p>

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by Samar Khurshid, City government reporter, Gotham Gazette
     

Read more by this writer.

</p>
<p><img src="http://www.gothamgazette.com/images/graphics/2017/wtc-orange-amazon-via-edc.jpg" alt="wtc orange amazon via edc" width="600" height="400" /></p> <p>One World Trade Center lit up orange for Amazon (photo via NYC EDC)</p> <hr /> <p>New York is laying out the red carpet to entice online retail giant Amazon to locate its new corporate headquarters in the state. Governor Andrew Cuomo promised a slew of incentives to support four official proposals from different regions that were submitted to the company on Wednesday, and New York City Mayor Bill de Blasio lit up the city in orange at night as a fawning branding appeal.</p> <p>New York City’s own <a href="https://www.dropbox.com/s/omgt5ywmgzundkv/Amazon%20Deck%20for%20Press%20-%2010.18.2017.pdf?dl=0&amp;utm_source=Press+Release&amp;utm_campaign=5db591fe9c-2017_10_18_NYC_Submits_Amazon_Proposal_PA&amp;utm_medium=email&amp;utm_term=0_b804b7ba34-5db591fe9c-102476565" target="_blank" rel="noopener noreferrer">bid</a> -- which included four possible business districts -- was backed by about 70 elected officials that represent the city, including members of Congress, state Senators and Assembly members, City Council members, borough presidents, and Public Advocate Letitia James. But at least four notable elected officials were conspicuously absent from the letter of support sent by the mayor’s office to Amazon CEO Jeff Bezos.</p> <p>Assembly Speaker Carl Heastie, of the Bronx, City Comptroller Scott Stringer, and City Council Members Corey Johnson and Donovan Richards, both contenders to become the next Speaker of the City Council, did not sign on to the letter.</p> <p>“No city embodies the American traditions of innovation and creativity quite like New York City,” <a href="https://www.dropbox.com/s/fa1bvw2m82molqv/Amazon%20Elected%20Letter.pdf?dl=0&amp;utm_source=Press+Release&amp;utm_campaign=5db591fe9c-2017_10_18_NYC_Submits_Amazon_Proposal_PA&amp;utm_medium=email&amp;utm_term=0_b804b7ba34-5db591fe9c-102476565" target="_blank" rel="noopener noreferrer">the letter</a> reads. “It has transformed from a Dutch settlement, to the nation’s first capital, to a booming industrial center. It became a port of hope for millions of immigrants looking for a better life, and a model for urban revitalization. From Broadway, the Bronx Zoo and the Brooklyn Bridge, to Citi Field and the shores of Staten Island, New York City is a place where history is made every day. Our tradition of reinvention matches yours, and we invite you to join us in writing our next chapters together.”</p> <p>A spokesperson for Stringer declined to comment. Multiple messages and emails sent to spokespeople for Heastie were not returned.</p> <p>“We’re excited about the prospect of new businesses coming to New York City,” said Jordan Gibbons, a spokesperson for Council Member Richards, “but before we support the plan, we need more information about job standards and impact on local businesses.”</p> <p>Council Member Johnson wrote in a text that he “didn’t sign on to [the] letter because I have concerns about Amazon’s labor record but also recognize 50K jobs would be good for the city.” &nbsp;</p> <p>As Johnson noted, Amazon’s second headquarters is expected to create 50,000 jobs and bring in roughly $5 billion in investment. One of the proposed areas for Amazon’s headquarters, Midtown West, falls in Johnson’s Manhattan district. City Council members representing other proposed sites for the headquarters signed on to the letter.</p> <p>Amazon’s announcement and request for proposals triggered a mad dash by dozens of cities across the country to lure the multi-billion-dollar company. To bolster their bids, some cities and states have promised enormous tax breaks while others have pledged infrastructure investments around a potential Amazon campus. Most have hedged their bets on being able to provide the optimum balance of tech talent, affordable and ample real estate, and an appealing quality of life. One municipality in Georgia even went so far as to <a href="https://www.usatoday.com/story/tech/news/2017/10/03/city-aims-name-new-town-company-amazon-georgia/727765001/" target="_blank" rel="noopener noreferrer">propose</a> creating an entirely new city named for the online retailer.</p> <p>Short of naming a new business district after Amazon, New York City’s pitch includes all those aspects. Culled from more than two dozen proposals from across the five boroughs, the New York City Economic Development Corporation, in collaboration with the Empire State Development Corporation, decided on four city areas that met Amazon’s criteria -- Midtown West, Long Island City, Lower Manhattan, and the Brooklyn Tech Triangle. The city is banking on many factors, including its pool of 2.3 million residents who hold a bachelor’s degree and above -- a number higher than the combined comparable workforce of Boston, Philadelphia, San Francisco, Los Angeles and Washington D.C.</p> <p>The city has 296,000 workers in the tech industry and is growing rapidly in sectors of the economy where Amazon is diversifying, including media, advertising, fashion, and manufacturing.</p> <p>And the city is already an attractive destination for Amazon, which has a distribution and fulfillment center, corporate offices and retail space in the city with plans to expand in Manhattan. Amazon’s website says it has 1,000 employees in New York, plus seasonal additions around the winter holidays.</p> <p>An EDC spokesperson said the city cast a wide net seeking support for the proposal. “Considering how hard it is to get New Yorkers to agree on anything, the fact that we got so many signatures in such a short time was pretty impressive and overwhelming,” the spokesperson said, expressing optimism that New York would outmatch other cities with its bid.</p> <p>Asked at an unrelated Thursday news conference about his pursuit of Amazon when he has been opposed to Walmart opening in the city, de Blasio called it “apples and oranges.” “Amazon, there are some issues that need to be addressed with labor, there’s no two ways about it. But, at the same time, this is a company talking about potentially fundamentally changing the economy in New York City. Adding 50,000 jobs is a game-changer. And it’s something we need and we need more high-quality jobs for the people of New York City. So we can work on those labor issues and I’m happy to work on those labor issues, but no, I’m convinced that Amazon will be a net gain for New York City, unquestionably.”</p> <p>Responding to Johnson’s concerns, the EDC spokesperson said that Amazon’s presence in New York would afford the city an opportunity to engage directly with the firm and “work with them to advance our shared values.” Pointing out that it was premature to evaluate a deal that hasn’t yet been approved, the spokesperson said the city would be able to negotiate down the line to add guarantees to ensure the number of jobs created, salary levels and that jobs go to New Yorkers. “It’s pretty clear to us that they want to build the headquarters with the community, not in the community,” the spokesperson said.</p> <p>“It’s puzzling, I don’t know why you’d want to turn down a shot at 50,000 good-paying jobs,” said Jonathan Bowles, executive director of the Center for an Urban Future, when asked why leaders like Stringer, Heastie, and Johnson would not sign on. He conceded that concerns about corporate subsidies are valid, but that the Amazon opportunity is too good to pass up. “It’s a big win for New York City if we can get it.”</p> <p>

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by Samar Khurshid, City government reporter, Gotham Gazette
     

Read more by this writer.

</p>
Can Redevelopment of the Bedford Union Armory Be Saved? 2017-10-03T04:00:00+00:00 2017-10-03T04:00:00+00:00 http://www.gothamgazette.com/?id=7232:can-redevelopment-of-the-bedford-union-armory-be-saved Ben Max <p><img src="http://www.gothamgazette.com/images/graphics/2017/bedford-armory-rendering.jpg" alt="bedford armory rendering" width="600" height="423" /></p> <p>Rendering of the Bedford Union Armory via BFC Partners</p> <hr /> <p>A land use proposal to redevelop the 138,000-square-foot, publicly-owned Bedford Union Armory in Crown Heights to create a mix of different types of housing and a state-of-the-art recreation center has seen successive setbacks in recent months. As proposed, the project has been rejected by community advocates, the local community board, the local City Council member, Laurie Cumbo, and the borough president, Eric Adams, all of whom believe the project should include more affordable housing.</p> <p>The de Blasio administration, in response, has vowed to work with local elected officials and the city-selected developer behind the project to make it acceptable, especially to Cumbo, who will have the final say in a few short weeks.</p> <p>But, with any land use redevelopment, the administration must balance the resources at its disposal to achieve maximum effect, and in this case, making the project more palatable to community members calling it a harbinger of gentrification would likely mean making it less profitable for the developer and more costly for the city. As the clock ticks on negotiations and a series of essential decisions dictated by the city’s land use review process, it is unclear what steps the de Blasio administration might take to make a deal happen, advance a key project, and avoid a potentially significant political defeat.</p> <p>BFC Partners is the developer selected through a competitive bidding process run by the New York City Economic Development Corporation. The initial request for proposals (RFP) was put out in October 2013, prior to Mayor Bill de Blasio taking office, and the project was awarded to BFC in December 2015. Over the next year, the project became a source of significant controversy and become a burning issue in this year’s District 35 City Council race, where Cumbo was running for reelection. It has also become a symbol of the de Blasio administration’s strategy for creating affordable housing across the city and a sore spot and political vulnerability for the mayor, a fellow Democrat who did not endorse Cumbo but sent behind-the-scenes support for her campaign.</p> <p>The redevelopment proposal envisions converting the armory -- which spans an entire city block and sits defunct -- into an affordable recreation center, 330 rental housing units at various levels of affordability, and 56 condominiums to be sold.</p> <p>Of the 330 rental units, 164 would be market rate while the rest would be “affordable” for low-income and middle-income families, whereby rents are capped so that tenants pay no more than 30 percent of their income to the landlord. Affordability is calculated according to the 2016 Area Median Income (AMI) of $81,600 for a family of three. The rental units would include 18 units at 40 percent AMI; 49 units at 50 percent AMI; and 99 units at 110 percent AMI, providing rent regulated apartments to households of various income levels.</p> <p><img src="http://www.gothamgazette.com/images/graphics/2017/reset_1/screen-shot-2017-10-03-at-11.22.jpg" alt="AMI apartments Bedford Union Armory" width="400" height="140" style="display: block; margin-left: auto; margin-right: auto;" /></p> <p>Of the condos, 44 would be sold at market rate and 12 at 120 percent AMI. BFC Partners would receive a 99-year ground lease on a majority of the site, recouping its costs through sales of the condos, rents on the apartments, fees from the recreation center, and a developer fee from the city.</p> <p>De Blasio has pitched the project as a much-needed community facility, similar to the Park Slope Armory recreation center, which can be kept affordable in the long-term under the current structure of the plan, with the benefit of creating affordable housing. As it stands, the project does not include any housing subsidies that the administration has used in the past to create more affordability in land use redevelopments. At a September 14 news conference, de Blasio indicated openness to adding more subsidies, though he was noncommittal as to what the city might do to sweeten the deal.</p> <p>“[W]e want that to be the best possible project for the community, we're going to look at every way to improve it,” he told reporters, noting that the current plan allows for the recreation center to be affordable on an ongoing basis. “That's what we need to come out of this in the end. But we’re going to work with the Council member to see if there is a way to improve the project that would win her support and be more comfortable for the community.”</p> <p>Cumbo, the Council member de Blasio referred to, recently won the primary for her reelection effort against an opponent who put the Bedford Union Armory at the core of the campaign, accusing Cumbo of being too close to real estate developers and ineffective at stemming the gentrification and displacement sweeping the changing district. Cumbo faced criticism for dithering about the project for months only to oppose it earlier this year, but came to draw a line in the sand on the project. Without her approval, the project is dead on arrival at the City Council, which traditionally votes with the local member on land use applications and will have 50 days to evaluate the deal once it is referred by the City Planning Commission, perhaps with adjustments, unless it is taken completely off the table by then.</p> <p>Cumbo was not made available to comment for this article. Her spokesperson, Kristia Beaubrun, referred Gotham Gazette to the Council member’s statement in May when she came out against the proposal.</p> <p>"Since the very beginning our message has been clear: We will not allow public land to be used for the purpose of luxury condominiums,” she said, calling on the mayor to “go back to the drawing board and produce a plan that meets the needs of my Brooklyn neighbors.”</p> <p>Last month, Borough President Adams, as part of the Uniform Land Use Review Procedure (ULURP) required of all such proposals, rejected the project and recommended that the city increase the number of deeply affordable units and also provide more upper-tier affordable housing units to offset the costs of running the recreation center.</p> <p>Adams also called for more permanent affordability -- currently, 30 percent of the units are permanently affordable -- and for 20 percent of the rental apartments to be allotted to the Department of Housing Preservation and Development’s “Our Space Initiative” for housing homeless families. “This is our opportunity to get this right,” he said. “This process has gone through years of debate, emotions, and public scrutiny, both for and against the development. We must ultimately come together and find the right balance that is the ideal solution for the future of Crown Heights, and for the optimal reuse of the Bedford Union Armory as a public resource.”</p> <p>The proposal is currently before the City Planning Commission, which will hold a public review session on Wednesday before voting on the project later this month. The CPC can either approve the project, with or without changes, and send it to the City Council for further review, or it can reject it, although that would be shocking and especially rare.</p> <p>“It’s hard for me to imagine tweaks at this stage that would address the concerns being raised,” said Emily Goldstein, senior campaign organizer at the Association for Neighborhood and Housing Development. Goldstein, who is not involved in the community efforts around the armory, said the administration isn’t taking full advantage of the city’s ownership of the land, which allows it to demand more benefits than it could if the project were on a privately-owned site. “There are broader concerns about wanting lasting community control,” she said.</p> <p>Goldstein hits at the heart of the opposition to the project by community activists. The Our Armory Coalition, a group that includes the Crown Heights Tenant Union, New York Communities for Change, Picture the Homeless, The Black Institute, The Legal Aid Society, and others, have called for a community land trust to develop the project, rather than a private firm. That would allow community voices to drive decisions on the property in the community interest, rather than effectively giving a for-profit developer a century-long hold over public property.</p> <p>“The RFP process for the Bedford Armory has been flawed and corrupt from the very start,” said the coalition, in a statement last month, calling for the project to be scrapped entirely and for the city to issue a new request for proposals. “Elected officials including Cumbo are [sic] failed to address the fact that BFC is a for profit developer, making money off our public land while not providing real affordability to the community. And that’s unacceptable.”</p> <p>“I don’t see any reason it shouldn’t be explored,” said ANHD’s Goldstein of a community land trust, also insisting that it isn’t the only option available. “There are other ways to build in the idea that public land is a public resource that should remain public. I think there’s a flaw in the calculus the city is using.”</p> <p>She acknowledged that deeper affordability would require more city subsidies and that BFC’s application may have been the most attractive proposal. But, she said, “It’s shortsighted to do what’s cheaper in the short term. What you lose in the long term is permanent affordability. It’s hard to start from where they are and make it more affordable.”</p> <p>One housing expert said the city is trying to save as much money as possible, and any subsidies applied to the Bedford Union Armory would mean not being able to use them in other neighborhoods. “The city likes to think of itself as a negotiator on the community side but they’re really not, they’re really just a broker,” said the expert said, who requested anonymity to speak more freely and pointed out that the hurdles to the Bedford Armory project stem from the city’s “deal-by-deal approach” to development, which allows community advocates to pressure the administration with an all-or-nothing opposition rather than pushing for compromise.</p> <p>That’s the case with the Our Armory coalition. Jonathan Westin, executive director of New York Communities for Change and a strident critic of the administration on its housing policies, is adamant that the only way the project could be acceptable to his group is if there are no luxury condos or market-rate rental units. “They could force the developer off the project and make it 100 percent affordable since it’s on public land,” he said. “Using public land to build luxury housing is a travesty.”</p> <p>Although issuing a new RFP for the project, and triggering another round of ULURP, could potentially take years, Westin said it would be worth it. “It’s better than a gentrification project that would displace the community.”</p> <p>Westin also pushed back against the argument that the condos are being used to cross-subsidize the recreation center. A BFC spokesperson earlier told Gotham Gazette that the firm will make a net profit of less than $800,000 from the sale of the condos and that those funds would be put back into the recreation center. The spokesperson also said that the annual cash-flow from all the rental units, which are expensive to operate and maintain, would be around $800,000. Citing Borough President Adams’ recommendations, the spokesperson pointed out that removing the revenue-generating component of the project would require other funds to fill the gap, while noting that the original RFP for the project specified that the developer should not request any housing subsidies from the city.</p> <p>“This cross-subsidization frame is what luxury developers use to justify luxury development,” Westin said. Instead, he said the city could designate the armory as a land bank and set restrictions on the land, which could then be developed by a nonprofit developer. “It’s completely feasible to do this project 100 percent affordable,” he said.</p> <p>The project does have its supporters. Geoffrey Davis, a Democratic district leader from Crown Heights, emphasized that the recreation center was a necessity for the community. “Our seniors, our young people, our community will have a place to go to,” he said in a phone interview. “I say, continue to negotiate, work it out. Do not leave the table. If you say kill the deal and walk away, we’re talking about another 30 years.”</p> <p>

***
by Samar Khurshid, City government reporter, Gotham Gazette
     

Read more by this writer.

</p>
<p><img src="http://www.gothamgazette.com/images/graphics/2017/bedford-armory-rendering.jpg" alt="bedford armory rendering" width="600" height="423" /></p> <p>Rendering of the Bedford Union Armory via BFC Partners</p> <hr /> <p>A land use proposal to redevelop the 138,000-square-foot, publicly-owned Bedford Union Armory in Crown Heights to create a mix of different types of housing and a state-of-the-art recreation center has seen successive setbacks in recent months. As proposed, the project has been rejected by community advocates, the local community board, the local City Council member, Laurie Cumbo, and the borough president, Eric Adams, all of whom believe the project should include more affordable housing.</p> <p>The de Blasio administration, in response, has vowed to work with local elected officials and the city-selected developer behind the project to make it acceptable, especially to Cumbo, who will have the final say in a few short weeks.</p> <p>But, with any land use redevelopment, the administration must balance the resources at its disposal to achieve maximum effect, and in this case, making the project more palatable to community members calling it a harbinger of gentrification would likely mean making it less profitable for the developer and more costly for the city. As the clock ticks on negotiations and a series of essential decisions dictated by the city’s land use review process, it is unclear what steps the de Blasio administration might take to make a deal happen, advance a key project, and avoid a potentially significant political defeat.</p> <p>BFC Partners is the developer selected through a competitive bidding process run by the New York City Economic Development Corporation. The initial request for proposals (RFP) was put out in October 2013, prior to Mayor Bill de Blasio taking office, and the project was awarded to BFC in December 2015. Over the next year, the project became a source of significant controversy and become a burning issue in this year’s District 35 City Council race, where Cumbo was running for reelection. It has also become a symbol of the de Blasio administration’s strategy for creating affordable housing across the city and a sore spot and political vulnerability for the mayor, a fellow Democrat who did not endorse Cumbo but sent behind-the-scenes support for her campaign.</p> <p>The redevelopment proposal envisions converting the armory -- which spans an entire city block and sits defunct -- into an affordable recreation center, 330 rental housing units at various levels of affordability, and 56 condominiums to be sold.</p> <p>Of the 330 rental units, 164 would be market rate while the rest would be “affordable” for low-income and middle-income families, whereby rents are capped so that tenants pay no more than 30 percent of their income to the landlord. Affordability is calculated according to the 2016 Area Median Income (AMI) of $81,600 for a family of three. The rental units would include 18 units at 40 percent AMI; 49 units at 50 percent AMI; and 99 units at 110 percent AMI, providing rent regulated apartments to households of various income levels.</p> <p><img src="http://www.gothamgazette.com/images/graphics/2017/reset_1/screen-shot-2017-10-03-at-11.22.jpg" alt="AMI apartments Bedford Union Armory" width="400" height="140" style="display: block; margin-left: auto; margin-right: auto;" /></p> <p>Of the condos, 44 would be sold at market rate and 12 at 120 percent AMI. BFC Partners would receive a 99-year ground lease on a majority of the site, recouping its costs through sales of the condos, rents on the apartments, fees from the recreation center, and a developer fee from the city.</p> <p>De Blasio has pitched the project as a much-needed community facility, similar to the Park Slope Armory recreation center, which can be kept affordable in the long-term under the current structure of the plan, with the benefit of creating affordable housing. As it stands, the project does not include any housing subsidies that the administration has used in the past to create more affordability in land use redevelopments. At a September 14 news conference, de Blasio indicated openness to adding more subsidies, though he was noncommittal as to what the city might do to sweeten the deal.</p> <p>“[W]e want that to be the best possible project for the community, we're going to look at every way to improve it,” he told reporters, noting that the current plan allows for the recreation center to be affordable on an ongoing basis. “That's what we need to come out of this in the end. But we’re going to work with the Council member to see if there is a way to improve the project that would win her support and be more comfortable for the community.”</p> <p>Cumbo, the Council member de Blasio referred to, recently won the primary for her reelection effort against an opponent who put the Bedford Union Armory at the core of the campaign, accusing Cumbo of being too close to real estate developers and ineffective at stemming the gentrification and displacement sweeping the changing district. Cumbo faced criticism for dithering about the project for months only to oppose it earlier this year, but came to draw a line in the sand on the project. Without her approval, the project is dead on arrival at the City Council, which traditionally votes with the local member on land use applications and will have 50 days to evaluate the deal once it is referred by the City Planning Commission, perhaps with adjustments, unless it is taken completely off the table by then.</p> <p>Cumbo was not made available to comment for this article. Her spokesperson, Kristia Beaubrun, referred Gotham Gazette to the Council member’s statement in May when she came out against the proposal.</p> <p>"Since the very beginning our message has been clear: We will not allow public land to be used for the purpose of luxury condominiums,” she said, calling on the mayor to “go back to the drawing board and produce a plan that meets the needs of my Brooklyn neighbors.”</p> <p>Last month, Borough President Adams, as part of the Uniform Land Use Review Procedure (ULURP) required of all such proposals, rejected the project and recommended that the city increase the number of deeply affordable units and also provide more upper-tier affordable housing units to offset the costs of running the recreation center.</p> <p>Adams also called for more permanent affordability -- currently, 30 percent of the units are permanently affordable -- and for 20 percent of the rental apartments to be allotted to the Department of Housing Preservation and Development’s “Our Space Initiative” for housing homeless families. “This is our opportunity to get this right,” he said. “This process has gone through years of debate, emotions, and public scrutiny, both for and against the development. We must ultimately come together and find the right balance that is the ideal solution for the future of Crown Heights, and for the optimal reuse of the Bedford Union Armory as a public resource.”</p> <p>The proposal is currently before the City Planning Commission, which will hold a public review session on Wednesday before voting on the project later this month. The CPC can either approve the project, with or without changes, and send it to the City Council for further review, or it can reject it, although that would be shocking and especially rare.</p> <p>“It’s hard for me to imagine tweaks at this stage that would address the concerns being raised,” said Emily Goldstein, senior campaign organizer at the Association for Neighborhood and Housing Development. Goldstein, who is not involved in the community efforts around the armory, said the administration isn’t taking full advantage of the city’s ownership of the land, which allows it to demand more benefits than it could if the project were on a privately-owned site. “There are broader concerns about wanting lasting community control,” she said.</p> <p>Goldstein hits at the heart of the opposition to the project by community activists. The Our Armory Coalition, a group that includes the Crown Heights Tenant Union, New York Communities for Change, Picture the Homeless, The Black Institute, The Legal Aid Society, and others, have called for a community land trust to develop the project, rather than a private firm. That would allow community voices to drive decisions on the property in the community interest, rather than effectively giving a for-profit developer a century-long hold over public property.</p> <p>“The RFP process for the Bedford Armory has been flawed and corrupt from the very start,” said the coalition, in a statement last month, calling for the project to be scrapped entirely and for the city to issue a new request for proposals. “Elected officials including Cumbo are [sic] failed to address the fact that BFC is a for profit developer, making money off our public land while not providing real affordability to the community. And that’s unacceptable.”</p> <p>“I don’t see any reason it shouldn’t be explored,” said ANHD’s Goldstein of a community land trust, also insisting that it isn’t the only option available. “There are other ways to build in the idea that public land is a public resource that should remain public. I think there’s a flaw in the calculus the city is using.”</p> <p>She acknowledged that deeper affordability would require more city subsidies and that BFC’s application may have been the most attractive proposal. But, she said, “It’s shortsighted to do what’s cheaper in the short term. What you lose in the long term is permanent affordability. It’s hard to start from where they are and make it more affordable.”</p> <p>One housing expert said the city is trying to save as much money as possible, and any subsidies applied to the Bedford Union Armory would mean not being able to use them in other neighborhoods. “The city likes to think of itself as a negotiator on the community side but they’re really not, they’re really just a broker,” said the expert said, who requested anonymity to speak more freely and pointed out that the hurdles to the Bedford Armory project stem from the city’s “deal-by-deal approach” to development, which allows community advocates to pressure the administration with an all-or-nothing opposition rather than pushing for compromise.</p> <p>That’s the case with the Our Armory coalition. Jonathan Westin, executive director of New York Communities for Change and a strident critic of the administration on its housing policies, is adamant that the only way the project could be acceptable to his group is if there are no luxury condos or market-rate rental units. “They could force the developer off the project and make it 100 percent affordable since it’s on public land,” he said. “Using public land to build luxury housing is a travesty.”</p> <p>Although issuing a new RFP for the project, and triggering another round of ULURP, could potentially take years, Westin said it would be worth it. “It’s better than a gentrification project that would displace the community.”</p> <p>Westin also pushed back against the argument that the condos are being used to cross-subsidize the recreation center. A BFC spokesperson earlier told Gotham Gazette that the firm will make a net profit of less than $800,000 from the sale of the condos and that those funds would be put back into the recreation center. The spokesperson also said that the annual cash-flow from all the rental units, which are expensive to operate and maintain, would be around $800,000. Citing Borough President Adams’ recommendations, the spokesperson pointed out that removing the revenue-generating component of the project would require other funds to fill the gap, while noting that the original RFP for the project specified that the developer should not request any housing subsidies from the city.</p> <p>“This cross-subsidization frame is what luxury developers use to justify luxury development,” Westin said. Instead, he said the city could designate the armory as a land bank and set restrictions on the land, which could then be developed by a nonprofit developer. “It’s completely feasible to do this project 100 percent affordable,” he said.</p> <p>The project does have its supporters. Geoffrey Davis, a Democratic district leader from Crown Heights, emphasized that the recreation center was a necessity for the community. “Our seniors, our young people, our community will have a place to go to,” he said in a phone interview. “I say, continue to negotiate, work it out. Do not leave the table. If you say kill the deal and walk away, we’re talking about another 30 years.”</p> <p>

***
by Samar Khurshid, City government reporter, Gotham Gazette
     

Read more by this writer.

</p>
Where’s the Mayor’s Jobs Plan? 2017-05-30T04:00:00+00:00 2017-05-30T04:00:00+00:00 http://www.gothamgazette.com/?id=6962:where-s-the-mayor-s-jobs-plan Ben Max <p><img src="http://www.gothamgazette.com/images/graphics/2017/34848928905_1c75a99343_z.jpg" alt="de blasio jobs tour" width="600" height="400" /></p> <p>Mayor de Blasio in the Bronx (photo:&nbsp;Ed Reed/Mayor's Office)</p> <hr /> <p>Kicking off his week in the Bronx, Mayor Bill de Blasio said May 22 that his administration’s efforts to fight inequality are working and that while unemployment has dropped significantly in the borough, there is more work to be done. “The Bronx has borne the brunt of that inequality crisis in many ways,” the mayor said, but what his administration is doing is “disproportionately benefiting the Bronx.”</p> <p>The mayor told those sitting with him -- senior administration officials and Borough President Ruben Diaz Jr. -- and any others paying attention that his administration is focused on “maximizing economic opportunity.” “[N]ot just any jobs,” the mayor said, “but in fact an increasing focus on good paying jobs, which is what I devoted the State of the City to.”</p> <p>De Blasio was referring to his February 13 speech, during which he announced that the city would invest in creating 100,000 permanent private sector jobs that pay more than $50,000 a year. It would be a ten-year plan, the mayor said, and while de Blasio offered a few examples of the economic sectors that would see some of that job growth -- tech, life sciences, renewable energy, manufacturing -- his announcement included few details. Soon after his State of the City, de Blasio explained that his administration would be releasing a detailed policy book, as it had done in 2014 with his 200,000-unit ten-year affordable housing plan and a few other major initiatives, to show where the jobs would come from and how.</p> <p>On and off for several weeks, the mayor defended setting the 100,000 goal without a roadmap to get there, saying that it was the target city experts could ambitiously but reasonably forecast and that the specifics would follow. He also found himself defending it as ambitious enough -- critics pointed out that the city has been adding jobs at a much more rapid pace over the last ten years, but the mayor explained that job growth was already slowing and that he is focused on the wage threshold.</p> <p>De Blasio has been asked about the plan, and when the public would see the details, at press conferences and his top aides were asked about it at multiple City Council budget hearings. At a late April news conference, Gotham Gazette asked when the jobs plan could be expected, whether it was imminent. “Not imminent in the sense of the next few weeks,” de Blasio said. “But, at some point this year I'll give you a better read on when."</p> <p>At a May 9 City Council budget hearing, the head of the city’s Economic Development Corporation, James Patchett, told Council members that de Blasio administration officials are working diligently on the plan.</p> <p>City Council Member Dan Garodnick, chair of the economic development committee, said, "We continue to have little clarity on the sources of jobs in the mayor's jobs plan.” Patchett said, “We can expect to have a plan very shortly,” but would not give an exact deadline, instead saying, “Certainly, I would love to have it come by the end of the summer. Hopefully sooner.”</p> <p>As Garodnick pressed for details and whether the 100,000 goal is the right one, Patchett said, “I think you’re right to ask for the plan, I think when you see it you’ll be able to better judge that. Broadly speaking, the 100,000 jobs target is focused on the specific ways the city is encouraging job growth, as opposed to more broadly in the economy.” Almost 300,000 jobs were created over the last three years, he added, but what the de Blasio administration is focused on is jobs created through city intervention and at the “good paying” threshold of $50,000 per year.</p> <p>According to City Hall, top de Blasio officials under Deputy Mayor Alicia Glen, who oversees housing and economic development, continue to meet weekly and a detailed jobs plan is indeed expected sometime this summer. Glen’s portfolio includes the Economic Development Corporation; Small Business Services, which runs workforce development programming; the Mayor’s Office of Media and Entertainment; and other agencies that will be integral to the jobs plan.</p> <p>“Senior leadership from across the administration has met weekly on the jobs plan for months now, and our work is in an advanced stage,” said Melissa Grace, a de Blasio spokesperson, in a statement. “This is a major undertaking that will improve the earning power and professional opportunities of thousands of New Yorkers. From Vision Zero to ThriveNYC to Housing New York, we’ve consistently delivered on these big multi-agency initiatives because we take the time to do them right.”</p> <p>The de Blasio administration has already released pieces of the plan, including an investment in the life sciences sector; manufacturing, garment, and fashion jobs in Brooklyn through enhanced use of both the Brooklyn Navy Yard and Brooklyn Army Terminal; and a new technology hub in Union Square. As those pieces and others have indicated, the plan will include both industry-specific initiatives and place-based efforts, leveraging city-owned land.</p> <p>Another example was announced Tuesday, with the Economic Development Corporation releasing “the next phase of the Futureworks NYC advanced manufacturing initiative.” It will create more than 2,000 jobs over five years, the EDC announcement says, through “a series of partner networks and programs to increase access to advanced manufacturing technology, support startups, and help traditional manufacturing companies implement new technologies to help them remain competitive.”</p> <p>De Blasio has repeatedly stressed that his government is investing and intervening in order to help New Yorkers find good-paying jobs, part of the mayor’s fight against inequality, attempt to make the city more affordable, and efforts to lift hundreds of thousands of New Yorkers out of poverty. While de Blasio has celebrated that unemployment in the city is hovering around an impressively low 4%, there are not necessarily enough middle-income private-sector jobs. The mayor argues that the city must take action to spur important types of job growth that will benefit New Yorkers.</p> <p>But, as with many headline-grabbing announcements by de Blasio, the key will be planning, execution, return on city investment, and proper metrics for evaluating the program’s efficacy. It’s still not clear exactly how the 100,000 number was pegged.</p> <p>When Gotham Gazette asked the mayor <a href="http://www1.nyc.gov/office-of-the-mayor/news/104-17/transcript-mayor-de-blasio-appoints-david-hansell-commissioner-the-administration-for" target="_blank" rel="noopener noreferrer">at a February news conference</a>, he said, “The 100,000 plan emerged from looking at the strands that were already starting to move and asking how far we could take them, and what was a fair numerical stretch-goal to reach for. And that’s very consistent with how we did the affordable housing plan, how we did the pre-K plan – you name it. You know the question on the table is always what’s in motion, where can we take it, and then push it to its farthest extent. And I thought it was an important thing to focus on and really give people a sense of where we were going and what we could achieve.”</p> <p>Pushed on whether the 100,000 number over 10 years is really a big goal, de Blasio said that critics are not really looking at the last 10 years fairly, noting that the economic crisis that began nearly 10 years ago made the subsequent job growth numbers unsustainable for many years.</p> <p>“[W]e had huge job loss, and then we had impressive rebounding," de Blasio said. "We’ve gotten a little comfortable because we had such extraordinary success over the last couple of years. The first two years alone that I was in office was about 250,000 jobs. The difference now is the keep generating an intensive pace of job creation, but to focus more on the high-paying jobs. That’s going to take government stimulative effect, if you will. That’s going to take us doing smart, strategic things to keep growth high.”</p> <p>EDC’s Patchett at the May 9 City Council budget hearing said the plan won’t “identify every sub-initiative of like 17 jobs here and 14 jobs there, because it’s over the next 10 years and...we need to be aware of the fact that the plan will change and the economy will change over time. But we are going to go sector by sector and talk about specific job targets and a series of specific initiatives that we can announce right away that will make up a significant portion of those jobs.”</p> <p>“OK, we’ll look forward to seeing that,” Council Member Garodnick responded.</p> <p>

***
by Ben Max, Gotham Gazette
     

Read more by this writer.

</p>
<p><img src="http://www.gothamgazette.com/images/graphics/2017/34848928905_1c75a99343_z.jpg" alt="de blasio jobs tour" width="600" height="400" /></p> <p>Mayor de Blasio in the Bronx (photo:&nbsp;Ed Reed/Mayor's Office)</p> <hr /> <p>Kicking off his week in the Bronx, Mayor Bill de Blasio said May 22 that his administration’s efforts to fight inequality are working and that while unemployment has dropped significantly in the borough, there is more work to be done. “The Bronx has borne the brunt of that inequality crisis in many ways,” the mayor said, but what his administration is doing is “disproportionately benefiting the Bronx.”</p> <p>The mayor told those sitting with him -- senior administration officials and Borough President Ruben Diaz Jr. -- and any others paying attention that his administration is focused on “maximizing economic opportunity.” “[N]ot just any jobs,” the mayor said, “but in fact an increasing focus on good paying jobs, which is what I devoted the State of the City to.”</p> <p>De Blasio was referring to his February 13 speech, during which he announced that the city would invest in creating 100,000 permanent private sector jobs that pay more than $50,000 a year. It would be a ten-year plan, the mayor said, and while de Blasio offered a few examples of the economic sectors that would see some of that job growth -- tech, life sciences, renewable energy, manufacturing -- his announcement included few details. Soon after his State of the City, de Blasio explained that his administration would be releasing a detailed policy book, as it had done in 2014 with his 200,000-unit ten-year affordable housing plan and a few other major initiatives, to show where the jobs would come from and how.</p> <p>On and off for several weeks, the mayor defended setting the 100,000 goal without a roadmap to get there, saying that it was the target city experts could ambitiously but reasonably forecast and that the specifics would follow. He also found himself defending it as ambitious enough -- critics pointed out that the city has been adding jobs at a much more rapid pace over the last ten years, but the mayor explained that job growth was already slowing and that he is focused on the wage threshold.</p> <p>De Blasio has been asked about the plan, and when the public would see the details, at press conferences and his top aides were asked about it at multiple City Council budget hearings. At a late April news conference, Gotham Gazette asked when the jobs plan could be expected, whether it was imminent. “Not imminent in the sense of the next few weeks,” de Blasio said. “But, at some point this year I'll give you a better read on when."</p> <p>At a May 9 City Council budget hearing, the head of the city’s Economic Development Corporation, James Patchett, told Council members that de Blasio administration officials are working diligently on the plan.</p> <p>City Council Member Dan Garodnick, chair of the economic development committee, said, "We continue to have little clarity on the sources of jobs in the mayor's jobs plan.” Patchett said, “We can expect to have a plan very shortly,” but would not give an exact deadline, instead saying, “Certainly, I would love to have it come by the end of the summer. Hopefully sooner.”</p> <p>As Garodnick pressed for details and whether the 100,000 goal is the right one, Patchett said, “I think you’re right to ask for the plan, I think when you see it you’ll be able to better judge that. Broadly speaking, the 100,000 jobs target is focused on the specific ways the city is encouraging job growth, as opposed to more broadly in the economy.” Almost 300,000 jobs were created over the last three years, he added, but what the de Blasio administration is focused on is jobs created through city intervention and at the “good paying” threshold of $50,000 per year.</p> <p>According to City Hall, top de Blasio officials under Deputy Mayor Alicia Glen, who oversees housing and economic development, continue to meet weekly and a detailed jobs plan is indeed expected sometime this summer. Glen’s portfolio includes the Economic Development Corporation; Small Business Services, which runs workforce development programming; the Mayor’s Office of Media and Entertainment; and other agencies that will be integral to the jobs plan.</p> <p>“Senior leadership from across the administration has met weekly on the jobs plan for months now, and our work is in an advanced stage,” said Melissa Grace, a de Blasio spokesperson, in a statement. “This is a major undertaking that will improve the earning power and professional opportunities of thousands of New Yorkers. From Vision Zero to ThriveNYC to Housing New York, we’ve consistently delivered on these big multi-agency initiatives because we take the time to do them right.”</p> <p>The de Blasio administration has already released pieces of the plan, including an investment in the life sciences sector; manufacturing, garment, and fashion jobs in Brooklyn through enhanced use of both the Brooklyn Navy Yard and Brooklyn Army Terminal; and a new technology hub in Union Square. As those pieces and others have indicated, the plan will include both industry-specific initiatives and place-based efforts, leveraging city-owned land.</p> <p>Another example was announced Tuesday, with the Economic Development Corporation releasing “the next phase of the Futureworks NYC advanced manufacturing initiative.” It will create more than 2,000 jobs over five years, the EDC announcement says, through “a series of partner networks and programs to increase access to advanced manufacturing technology, support startups, and help traditional manufacturing companies implement new technologies to help them remain competitive.”</p> <p>De Blasio has repeatedly stressed that his government is investing and intervening in order to help New Yorkers find good-paying jobs, part of the mayor’s fight against inequality, attempt to make the city more affordable, and efforts to lift hundreds of thousands of New Yorkers out of poverty. While de Blasio has celebrated that unemployment in the city is hovering around an impressively low 4%, there are not necessarily enough middle-income private-sector jobs. The mayor argues that the city must take action to spur important types of job growth that will benefit New Yorkers.</p> <p>But, as with many headline-grabbing announcements by de Blasio, the key will be planning, execution, return on city investment, and proper metrics for evaluating the program’s efficacy. It’s still not clear exactly how the 100,000 number was pegged.</p> <p>When Gotham Gazette asked the mayor <a href="http://www1.nyc.gov/office-of-the-mayor/news/104-17/transcript-mayor-de-blasio-appoints-david-hansell-commissioner-the-administration-for" target="_blank" rel="noopener noreferrer">at a February news conference</a>, he said, “The 100,000 plan emerged from looking at the strands that were already starting to move and asking how far we could take them, and what was a fair numerical stretch-goal to reach for. And that’s very consistent with how we did the affordable housing plan, how we did the pre-K plan – you name it. You know the question on the table is always what’s in motion, where can we take it, and then push it to its farthest extent. And I thought it was an important thing to focus on and really give people a sense of where we were going and what we could achieve.”</p> <p>Pushed on whether the 100,000 number over 10 years is really a big goal, de Blasio said that critics are not really looking at the last 10 years fairly, noting that the economic crisis that began nearly 10 years ago made the subsequent job growth numbers unsustainable for many years.</p> <p>“[W]e had huge job loss, and then we had impressive rebounding," de Blasio said. "We’ve gotten a little comfortable because we had such extraordinary success over the last couple of years. The first two years alone that I was in office was about 250,000 jobs. The difference now is the keep generating an intensive pace of job creation, but to focus more on the high-paying jobs. That’s going to take government stimulative effect, if you will. That’s going to take us doing smart, strategic things to keep growth high.”</p> <p>EDC’s Patchett at the May 9 City Council budget hearing said the plan won’t “identify every sub-initiative of like 17 jobs here and 14 jobs there, because it’s over the next 10 years and...we need to be aware of the fact that the plan will change and the economy will change over time. But we are going to go sector by sector and talk about specific job targets and a series of specific initiatives that we can announce right away that will make up a significant portion of those jobs.”</p> <p>“OK, we’ll look forward to seeing that,” Council Member Garodnick responded.</p> <p>

***
by Ben Max, Gotham Gazette
     

Read more by this writer.

</p>
A Closer Look at BQX Funding Plans 2016-05-10T04:00:00+00:00 2016-05-10T04:00:00+00:00 http://www.gothamgazette.com/?id=6325:a-closer-look-at-bqx-funding-plans Ben Max <p dir="ltr"><img src="http://www.gothamgazette.com/images/bqx_presser_bdb.jpg" width="600" height="400" alt="bqx presser bdb" /></p> <p>photo via nyc.gov</p> <hr /> <p dir="ltr">In his State of the City address on February 4, Mayor Bill de Blasio announced a major new transportation project: a “state-of-the-art” streetcar that will run the waterfront on a 16-mile route between Sunset Park in Brooklyn and Astoria in Queens. This Brooklyn-Queens Connector, or the BQX, has drawn a somewhat mixed response. The de Blasio administration quickly publicized support from a variety of business and civic leaders, elected officials, and several transportation advocates. Some transportation experts and residents of the neighborhoods where the BQX will run remain skeptical.</p> <p dir="ltr">De Blasio hailed it as another key step in fighting inequality by offering more mass transportation to underserved New Yorkers, especially those in the public housing complexes near the route. It would also be a project the city would control itself, unlike the MTA, a state agency that runs the trains and buses. One immediate question, of course, was ‘who’s going to pay for it?’</p> <p dir="ltr">On February 16, the administration offered up more details in a media release that included the line “Self-financed streetcar line would generate 28,000 jobs and over $25 billion in wages and economic activity for New Yorkers.” A key phrase being “self-financed.”</p> <p dir="ltr">The project is estimated to cost about $2.5 billion, which the city will raise through a method of value capture and creation unlike the usual procedure of financing capital projects. Instead of selling municipal bonds to borrow money and paying those off from city revenues, as is done for capital funds, the city will create a non-profit entity -- likely a Local Development Corporation (LDC) -- which will then issue tax-exempt bonds to raise funds. This debt will be paid by “capturing” the increases in property taxes of existing real estate and new developments along the streetcar corridor. In effect, the plan is that BQX will pay for itself with the revenue it creates.</p> <p dir="ltr">Although LDCs are non-profit entities that are usually set up by private individuals and businesses interested in developing their communities, the city can also set up LDCs like the Hudson Yards Infrastructure Corporation (HYIC) and give them bond-issuing authority to raise funds.</p> <p dir="ltr">Private LDCs often receive support from the New York City Economic Development Corporation (EDC), a city-run nonprofit organization that promotes businesses and economic growth. For instance, the Greenpoint Manufacturing and Design Center LDC has received more than $4.4 million since 2014 from the City Council and the Brooklyn Borough President through EDC to convert an auto parts warehouse into a multi-tenant manufacturing center.</p> <p dir="ltr">The city is nowhere near setting up the nonprofit -- officials are currently <a href="http://www.capitalnewyork.com/article/city-hall/2016/04/8597483/city-gives-new-bqx-streetcar-details-and-revs-outreach-plan" target="_blank">courting public opinion</a> and further assessing the BQX proposal -- but a similar structure was used under Mayor Michael Bloomberg for the redevelopment of Hudson Yards on Manhattan’s West Side. HYIC was set up in 2005 to raise funds by issuing $3 billion in bonds for projects including the extension of the 7-train subway line and building green spaces from West 30th to 42nd Street between 10th and 11th Avenues. This is an analogous example of how the BQX will be funded and built.</p> <p dir="ltr">“As imagined, there would be no new taxes,” said an official from EDC. “This project will make it so that value of properties will go up so property taxes will go up nominally. Property taxes sliced off the top would be funnelled towards debt service.” In other words, increased property tax revenue is used to pay back the bonds.</p> <p dir="ltr">The EDC official added that there will be revenue through property taxes on new development along the corridor.</p> <p dir="ltr">Two key mechanisms of value capture are tax increment financing (TIF), which seems to be planned for BQX, and payments in lieu of taxes (PILOT). TIF is formulaic while PILOT is discounted payments negotiated with developers instead of regular property taxes. The administration has not clarified yet whether they will use both tools.</p> <p dir="ltr">In the case of Hudson Yards, HYIC garners revenue chiefly through PILOT, Tax Equivalency Payments (TEP), which are property taxes collected by the city from new development in the area, and District Improvement Bonuses paid by private developers for the right to build additional density, among other sources.</p> <p dir="ltr">City officials have not yet provided a detailed funding plan or fully explained why they are choosing value capture, which may have advantages in that it doesn’t add to existing capital debt, but also risks leading to higher costs that take longer to pay off. This was apparent in the years after the Hudson Yards project began. By 2014, the city had paid <a href="http://www.nydailynews.com/new-york/west-side-commercial-development-costs-taxpayers-650m-article-1.2015834" target="_blank">about $439 million</a> to service HYIC debt owing to shortfalls in projected revenue. That’s added onto the millions in cost overruns that the city also had to bear. The city had signed an Interest Support Agreement to service HYIC debt in the case of revenue shortfall.</p> <p dir="ltr">“There can be risks,” said George Sweeting, deputy director of the Independent Budget Office, a nonpartisan publicly-funded budget watchdog. Sweeting pointed out the disconnect between when the investment is made and when the city can start capturing value and making payments, since development doesn’t happen overnight. That’s why, in the case of Hudson Yards, the city agreed to pay off part of the debt directly from its general fund in the form of interest support payments and HYIC raised additional revenue by selling developers the right to create additional density.</p> <p dir="ltr">“It depends on how fast you think development will occur,” Sweeting said. “Some of where the [streetcar] is going has significant development already,” he added, noting that land along the waterfront has already become more valuable in recent years. “You might not be able to attribute [further growth] to the BQX.”</p> <p dir="ltr">With the traditional model of capital funding, Sweeting said, the city can “cross-subsidize” using other resources to pay off debt. That’s not necessarily the case with a dedicated value-capture scheme. “It can take longer to pay back,” he said.</p> <p dir="ltr">Bridget Fisher, associate director of the Schwartz Center for Economic Policy Analysis at The New School, highlighted many of the risks in value capture funding in <a href="http://www.economicpolicyresearch.org/images/docs/research/political_economy/Bridget_Fisher_WP_2015-4_final.pdf" target="_blank">a report</a> from July. Looking at the Hudson Yards redevelopment project, she sought to dispel the “myths” of self-financing.</p> <p dir="ltr">“Like Hudson Yards, describing these projects as self-financing is a rhetorical tool that can be misleading,” Fisher told Gotham Gazette. “There’s nothing magical about value capture. It’s still debt and it’s still expensive. It’s a decision to go outside the municipal bond market that adds cost, but the city’s still on the hook for the cost.”</p> <p dir="ltr">These bonds, issued by a nonprofit rather than the city directly, are also in a “legal limbo,” she said, since they’re not backed by the city but by an entity created by it. Adding to that, bond buyers receive higher interest rates because the bonds are not directly backed by the city, but still have the security of knowing the city will pay them back. “It does pay for itself,” Fisher said, “but all capital projects pay for themselves. They’re paid for with debt and debt is paid back with profits.”</p> <p dir="ltr">“The question to me is, why choose a route that’s more expensive when you have the capacity to do it through the normal city capital budget, which also has democratic checks and balances?” Fisher added.</p> <p dir="ltr">There is an advantage to the mechanism, depending on your budgeting perspective. The city has a constitutionally mandated debt limit and value capture funding does not add to it. “It preserves the general obligation debt capacity for other important projects,” Sweeting said.</p> <p dir="ltr">According to <a href="http://comptroller.nyc.gov/wp-content/uploads/documents/CAPDEBT2015.pdf" target="_blank">a report</a> by New York City Comptroller Scott Stringer, the city’s debt limit in fiscal 2016 was $85.18 billion. As of July 1, 2015 (start of the 2016 fiscal year), the city’s outstanding debt counted towards the debt limit was $57.43 billion, leaving $27.76 billion in debt-incurring power for the city. For fiscal 2017, the city’s debt is about $72 billion, owing to capital plan additions in this year’s budget.</p> <p dir="ltr">“The only pro,” said Fisher, “is that in an environment hypersensitive to spending, local officials can provide growth opportunities and still maintain a rhetoric of fiscal discipline.”</p> <p dir="ltr">“There is no absolute right or wrong,” said IBO’s Sweeting. “There are a lot of considerations to take into account -- how much new development there will be, the time between when you make investments and development will occur, and how you structure the value capture.” &nbsp;</p> <p dir="ltr">For the City Council members whose districts will be served by the BQX, funding is just one of the many concerns about the project. Council Member Carlos Menchaca represents Sunset Park, at one end of the line, and Council Member Costa Constantinides represents the other end, Astoria.</p> <p dir="ltr">“As we get more thoroughly through the process, there’s a lot of questions that have to be answered in my mind both on financing and the actual route and how it’s going to affect the communities,” Constantinides told Gotham Gazette shortly before an unrelated hearing at City Hall.</p> <p dir="ltr">He intends to be a strong voice throughout the process, he said, and wants to be part of the LDC when it is set up. So far, he believes the city is taking the right approach to community outreach and seeking input on the project - EDC held its first BQX visioning session in Astoria <a href="https://www.dnainfo.com/new-york/20160510/astoria/astoria-weighs-on-citys-streetcar-plan-first-public-meeting" target="_blank">on Monday night</a>. “That is a welcome change from when we used to have a mayoralty that would dictate to us how things were going and we’d have to respond,” Constantinides said.</p> <p dir="ltr">The Council member sees the potential in value capture funding, but also the risks. “I just wouldn’t want to see residents that are further away from the site…One, two, three-family homeowners that live two blocks from where this would potentially be...to see them get crushed by some sort of increase in their taxes would just not be where I was at,” he said. For homeowners, additional property value can be a great thing, but if you do not intend to sell in the near term, making larger property tax payments based on new assessments can be challenging.</p> <p dir="ltr">Menchaca reiterated these concerns. “I want to make sure that residents of affected neighborhoods like Sunset Park and Red Hook have a leading voice at the beginning of the process and in a way that determines the exact details and impact of the project,” he said in a statement. He emphasized that the BQX could provide relief to “transit deserts” like Red Hook and create better mass-transit for the growing manufacturing zone in Sunset Park. But he recognizes that it could also contribute to gentrification and displace existing residential and commercial tenants.</p> <p>“We've all seen ‘it will pay of itself’ projects fail to live up to expectations or have unintended consequences,” he added. “The impact of BQX – including the financial impact – must be studied carefully in public with residents at the center of the conversation.”</p> <p>

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by Samar Khurshid, City government reporter, Gotham Gazette
     

Read more by this writer.

</p>
<p dir="ltr"><img src="http://www.gothamgazette.com/images/bqx_presser_bdb.jpg" width="600" height="400" alt="bqx presser bdb" /></p> <p>photo via nyc.gov</p> <hr /> <p dir="ltr">In his State of the City address on February 4, Mayor Bill de Blasio announced a major new transportation project: a “state-of-the-art” streetcar that will run the waterfront on a 16-mile route between Sunset Park in Brooklyn and Astoria in Queens. This Brooklyn-Queens Connector, or the BQX, has drawn a somewhat mixed response. The de Blasio administration quickly publicized support from a variety of business and civic leaders, elected officials, and several transportation advocates. Some transportation experts and residents of the neighborhoods where the BQX will run remain skeptical.</p> <p dir="ltr">De Blasio hailed it as another key step in fighting inequality by offering more mass transportation to underserved New Yorkers, especially those in the public housing complexes near the route. It would also be a project the city would control itself, unlike the MTA, a state agency that runs the trains and buses. One immediate question, of course, was ‘who’s going to pay for it?’</p> <p dir="ltr">On February 16, the administration offered up more details in a media release that included the line “Self-financed streetcar line would generate 28,000 jobs and over $25 billion in wages and economic activity for New Yorkers.” A key phrase being “self-financed.”</p> <p dir="ltr">The project is estimated to cost about $2.5 billion, which the city will raise through a method of value capture and creation unlike the usual procedure of financing capital projects. Instead of selling municipal bonds to borrow money and paying those off from city revenues, as is done for capital funds, the city will create a non-profit entity -- likely a Local Development Corporation (LDC) -- which will then issue tax-exempt bonds to raise funds. This debt will be paid by “capturing” the increases in property taxes of existing real estate and new developments along the streetcar corridor. In effect, the plan is that BQX will pay for itself with the revenue it creates.</p> <p dir="ltr">Although LDCs are non-profit entities that are usually set up by private individuals and businesses interested in developing their communities, the city can also set up LDCs like the Hudson Yards Infrastructure Corporation (HYIC) and give them bond-issuing authority to raise funds.</p> <p dir="ltr">Private LDCs often receive support from the New York City Economic Development Corporation (EDC), a city-run nonprofit organization that promotes businesses and economic growth. For instance, the Greenpoint Manufacturing and Design Center LDC has received more than $4.4 million since 2014 from the City Council and the Brooklyn Borough President through EDC to convert an auto parts warehouse into a multi-tenant manufacturing center.</p> <p dir="ltr">The city is nowhere near setting up the nonprofit -- officials are currently <a href="http://www.capitalnewyork.com/article/city-hall/2016/04/8597483/city-gives-new-bqx-streetcar-details-and-revs-outreach-plan" target="_blank">courting public opinion</a> and further assessing the BQX proposal -- but a similar structure was used under Mayor Michael Bloomberg for the redevelopment of Hudson Yards on Manhattan’s West Side. HYIC was set up in 2005 to raise funds by issuing $3 billion in bonds for projects including the extension of the 7-train subway line and building green spaces from West 30th to 42nd Street between 10th and 11th Avenues. This is an analogous example of how the BQX will be funded and built.</p> <p dir="ltr">“As imagined, there would be no new taxes,” said an official from EDC. “This project will make it so that value of properties will go up so property taxes will go up nominally. Property taxes sliced off the top would be funnelled towards debt service.” In other words, increased property tax revenue is used to pay back the bonds.</p> <p dir="ltr">The EDC official added that there will be revenue through property taxes on new development along the corridor.</p> <p dir="ltr">Two key mechanisms of value capture are tax increment financing (TIF), which seems to be planned for BQX, and payments in lieu of taxes (PILOT). TIF is formulaic while PILOT is discounted payments negotiated with developers instead of regular property taxes. The administration has not clarified yet whether they will use both tools.</p> <p dir="ltr">In the case of Hudson Yards, HYIC garners revenue chiefly through PILOT, Tax Equivalency Payments (TEP), which are property taxes collected by the city from new development in the area, and District Improvement Bonuses paid by private developers for the right to build additional density, among other sources.</p> <p dir="ltr">City officials have not yet provided a detailed funding plan or fully explained why they are choosing value capture, which may have advantages in that it doesn’t add to existing capital debt, but also risks leading to higher costs that take longer to pay off. This was apparent in the years after the Hudson Yards project began. By 2014, the city had paid <a href="http://www.nydailynews.com/new-york/west-side-commercial-development-costs-taxpayers-650m-article-1.2015834" target="_blank">about $439 million</a> to service HYIC debt owing to shortfalls in projected revenue. That’s added onto the millions in cost overruns that the city also had to bear. The city had signed an Interest Support Agreement to service HYIC debt in the case of revenue shortfall.</p> <p dir="ltr">“There can be risks,” said George Sweeting, deputy director of the Independent Budget Office, a nonpartisan publicly-funded budget watchdog. Sweeting pointed out the disconnect between when the investment is made and when the city can start capturing value and making payments, since development doesn’t happen overnight. That’s why, in the case of Hudson Yards, the city agreed to pay off part of the debt directly from its general fund in the form of interest support payments and HYIC raised additional revenue by selling developers the right to create additional density.</p> <p dir="ltr">“It depends on how fast you think development will occur,” Sweeting said. “Some of where the [streetcar] is going has significant development already,” he added, noting that land along the waterfront has already become more valuable in recent years. “You might not be able to attribute [further growth] to the BQX.”</p> <p dir="ltr">With the traditional model of capital funding, Sweeting said, the city can “cross-subsidize” using other resources to pay off debt. That’s not necessarily the case with a dedicated value-capture scheme. “It can take longer to pay back,” he said.</p> <p dir="ltr">Bridget Fisher, associate director of the Schwartz Center for Economic Policy Analysis at The New School, highlighted many of the risks in value capture funding in <a href="http://www.economicpolicyresearch.org/images/docs/research/political_economy/Bridget_Fisher_WP_2015-4_final.pdf" target="_blank">a report</a> from July. Looking at the Hudson Yards redevelopment project, she sought to dispel the “myths” of self-financing.</p> <p dir="ltr">“Like Hudson Yards, describing these projects as self-financing is a rhetorical tool that can be misleading,” Fisher told Gotham Gazette. “There’s nothing magical about value capture. It’s still debt and it’s still expensive. It’s a decision to go outside the municipal bond market that adds cost, but the city’s still on the hook for the cost.”</p> <p dir="ltr">These bonds, issued by a nonprofit rather than the city directly, are also in a “legal limbo,” she said, since they’re not backed by the city but by an entity created by it. Adding to that, bond buyers receive higher interest rates because the bonds are not directly backed by the city, but still have the security of knowing the city will pay them back. “It does pay for itself,” Fisher said, “but all capital projects pay for themselves. They’re paid for with debt and debt is paid back with profits.”</p> <p dir="ltr">“The question to me is, why choose a route that’s more expensive when you have the capacity to do it through the normal city capital budget, which also has democratic checks and balances?” Fisher added.</p> <p dir="ltr">There is an advantage to the mechanism, depending on your budgeting perspective. The city has a constitutionally mandated debt limit and value capture funding does not add to it. “It preserves the general obligation debt capacity for other important projects,” Sweeting said.</p> <p dir="ltr">According to <a href="http://comptroller.nyc.gov/wp-content/uploads/documents/CAPDEBT2015.pdf" target="_blank">a report</a> by New York City Comptroller Scott Stringer, the city’s debt limit in fiscal 2016 was $85.18 billion. As of July 1, 2015 (start of the 2016 fiscal year), the city’s outstanding debt counted towards the debt limit was $57.43 billion, leaving $27.76 billion in debt-incurring power for the city. For fiscal 2017, the city’s debt is about $72 billion, owing to capital plan additions in this year’s budget.</p> <p dir="ltr">“The only pro,” said Fisher, “is that in an environment hypersensitive to spending, local officials can provide growth opportunities and still maintain a rhetoric of fiscal discipline.”</p> <p dir="ltr">“There is no absolute right or wrong,” said IBO’s Sweeting. “There are a lot of considerations to take into account -- how much new development there will be, the time between when you make investments and development will occur, and how you structure the value capture.” &nbsp;</p> <p dir="ltr">For the City Council members whose districts will be served by the BQX, funding is just one of the many concerns about the project. Council Member Carlos Menchaca represents Sunset Park, at one end of the line, and Council Member Costa Constantinides represents the other end, Astoria.</p> <p dir="ltr">“As we get more thoroughly through the process, there’s a lot of questions that have to be answered in my mind both on financing and the actual route and how it’s going to affect the communities,” Constantinides told Gotham Gazette shortly before an unrelated hearing at City Hall.</p> <p dir="ltr">He intends to be a strong voice throughout the process, he said, and wants to be part of the LDC when it is set up. So far, he believes the city is taking the right approach to community outreach and seeking input on the project - EDC held its first BQX visioning session in Astoria <a href="https://www.dnainfo.com/new-york/20160510/astoria/astoria-weighs-on-citys-streetcar-plan-first-public-meeting" target="_blank">on Monday night</a>. “That is a welcome change from when we used to have a mayoralty that would dictate to us how things were going and we’d have to respond,” Constantinides said.</p> <p dir="ltr">The Council member sees the potential in value capture funding, but also the risks. “I just wouldn’t want to see residents that are further away from the site…One, two, three-family homeowners that live two blocks from where this would potentially be...to see them get crushed by some sort of increase in their taxes would just not be where I was at,” he said. For homeowners, additional property value can be a great thing, but if you do not intend to sell in the near term, making larger property tax payments based on new assessments can be challenging.</p> <p dir="ltr">Menchaca reiterated these concerns. “I want to make sure that residents of affected neighborhoods like Sunset Park and Red Hook have a leading voice at the beginning of the process and in a way that determines the exact details and impact of the project,” he said in a statement. He emphasized that the BQX could provide relief to “transit deserts” like Red Hook and create better mass-transit for the growing manufacturing zone in Sunset Park. But he recognizes that it could also contribute to gentrification and displace existing residential and commercial tenants.</p> <p>“We've all seen ‘it will pay of itself’ projects fail to live up to expectations or have unintended consequences,” he added. “The impact of BQX – including the financial impact – must be studied carefully in public with residents at the center of the conversation.”</p> <p>

***
by Samar Khurshid, City government reporter, Gotham Gazette
     

Read more by this writer.

</p>