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MMR - FY20 - New York City Economic Development Corporation

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  • Parent Document:: Mayor's Management Report - Fiscal Year 2020
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      • NEW YORK CITY ECONOMIC DEVELOPMENT
      • CORPORATION James Patchett, President
      • NEW YORK CITY ECONOMIC DEVELOPMENT CORPORATION | Page 293
      • WHAT WE DO
      • New York City Economic
      • Development Corporation (NYCEDC)
      • is a mission-driven nonprofit
      • organization that strives to create
      • shared prosperity across New York
      • City. NYCEDC is responsible for
      • driving the growth of equitable,
      • sustainable neighborhoods and
      • investing in key industries like
      • technology, life sciences and
      • advanced manufacturing to diversify
      • the City’s economy and bring goodpaying jobs to New Yorkers. NYCEDC
      • invests in communities through
      • major infrastructure upgrades,
      • capital projects and real estate
      • development; manages City-owned
      • properties; and works to enhance
      • the City’s major and emerging
      • business sectors. NYCEDC addresses
      • challenges faced by traditional and
      • emerging industries through analysis
      • of current and evolving economic
      • trends, development of strategies
      • and solutions, and implementation of
      • programs that help businesses start,
      • grow and thrive. Through the New
      • York City Industrial Development
      • Agency (NYCIDA), Build New
      • York City Resource Corporation
      • (Build NYC) and the New York City
      • Neighborhood Capital Corporation
      • (NYCNCC), NYCEDC helps eligible
      • businesses and registered nonprofits
      • meet financing needs for property
      • acquisition, expansion, new
      • equipment, renovation and working
      • capital through low-cost, tax-exempt
      • bonds, exemptions and abatements
      • of selected City and State taxes and
      • New Markets Tax Credits.
      • FOCUS ON EQUITY
      • NYCEDC fosters inclusive economic development across all five boroughs by helping
      • to lay the foundations of growth, advancing quality jobs across sectors and promoting
      • access to opportunity. Through investments in community facilities, affordable housing,
      • parks, open space, streetscapes, infrastructure and resiliency projects, NYCEDC works
      • with local communities to create dynamic and accessible neighborhoods across the City.
      • NYCNCC, a community-development entity administered by NYCEDC, applied for an
      • additional New Market Tax Credit (NMTC) allocation in November 2019 and received
      • notice in July 2020 that a third allocation of $50 million was granted by the U.S.
      • Department of the Treasury, bringing NYCNCC’s total amount awarded through the
      • NMTC Program to $160 million to support health centers, community facilities, grocery
      • stores and industrial projects in low-income communities.
      • Through Opportunity M/W/DBE, NYCEDC helps Minority, Women-Owned, and
      • Disadvantaged Business Enterprises (M/W/DBEs) overcome challenges to winning
      • government contracts for public projects. The ConstructNYC program helps small-tomidsized M/W/DBEs in the construction sector pre-qualify for the opportunity to work
      • on NYCEDC projects. NYCEDC’s Emerging Developer Loan Fund provides low-interest
      • loans to emerging M/W/DBE developers taking on real estate projects.
      • A strong network of innovation spaces and programs across the City provide the
      • resources companies need to grow in areas like advanced manufacturing, cybersecurity
      • and digital technology. In addition, NYCEDC’s HireNYC program helps connect low
      • income residents to job opportunities created by the organization’s development projects.
      • OUR SERVICES AND GOALS
      • SERVICE 1 Develop and build physical assets and infrastructure in all
      • five boroughs.
      • Goal 1a Support industry growth by improving the connectivity and livability
      • of neighborhoods and investing in infrastructure and area-wide
      • redevelopment.
      • SERVICE 2 Manage, maintain and enhance City assets to attract
      • businesses.
      • Goal 2a Leverage City assets to support business growth and strengthen
      • communities’ economic vitality.
      • SERVICE 3 Provide resources to targeted industries and businesses.
      • Goal 3a Grow and diversify the City’s economy by enhancing the
      • competitiveness of industries and businesses.
      • Goal 3b Facilitate private sector investments and make City investments
      • where necessary to support business growth and secure a positive
      • return to the City.
      • SERVICE 4 Leverage City investments to support inclusive economic
      • development.
      • Goal 4a Create economic opportunity for New Yorkers through real estate
      • development.
      • Page 294 | MAYOR’S MANAGEMENT REPORT
      • HOW WE PERFORMED IN FISCAL 2020
      • SERVICE 1 Develop and build physical assets and infrastructure in all five boroughs.
      • Goal 1a Support industry growth by improving the connectivity and livability of neighborhoods and investing in
      • infrastructure and area-wide redevelopment.
      • NYCEDC closed one real estate transaction in Fiscal 2020, unlocking $100 million in new private investment. This project,
      • located in Downtown Far Rockaway, resulted from the neighborhood’s 2017 rezoning and contributes to the City’s effort
      • to reestablish the area as a vibrant mixed-use neighborhood and commercial hub. The transaction will facilitate the
      • development of 224 units of affordable housing for residents with incomes ranging from 30-80 percent of the area median
      • income, along with 7,200 square feet of community space for a new daycare and 21,000 square feet of retail space. Four
      • additional transactions that were expected to close during Fiscal 2020 were delayed due to COVID-19 shutdown and
      • restrictions.
      • Capital expenditures for Fiscal 2020 totaled more than $342 million. Over the past year, NYCEDC has continued its capital
      • construction work to improve the quality of life for New Yorkers. One noteworthy milestone was the completion of the
      • Gateway Park in Jamaica, Queens which will provide the community with a new playground, more open green space and
      • a new roadway to ease traffic congestion on Atlantic Avenue. Construction is ongoing at the Coney Island Hospital for
      • NYC Health + Hospitals, which is expected to be completed in 2024. NYCEDC is also working on the NYC Department
      • of Environmental Protection’s Green Infrastructure project at sites in Brooklyn, Queens and the Bronx. A large portion of
      • capital construction projects managed by NYCEDC have been paused due to COVID-19 and associated fiscal impact.
      • The NYC Ferry system served nearly 5 million riders across six routes in Fiscal 2020. As with other modes of transit, COVID-19
      • heavily impacted NYC Ferry service during the last quarter of the year, resulting in a 12 percent decrease in overall ridership
      • from 5.7 million riders in Fiscal 2019. Since an initial 80 percent decrease in ridership at the outset of the pandemic in
      • March, ridership has steadily increased month over month. Throughout the pandemic, NYC Ferry has offered a reliable and
      • safe transportation option to essential workers, and in so doing expanded use of the City’s waterways as a core component
      • of the City’s transportation network. Looking forward, NYCEDC is continuing to work towards the addition of two new
      • routes to the NYC Ferry system with the St. George and Coney Island routes scheduled to launch in Calendar 2021.
      • Performance Indicators
      • Actual Target Trend
      • FY16 FY17 FY18 FY19 FY20 FY20 FY21 5-Year
      • Desired
      • Direction
      • « Private investment leveraged on the sale/long-term lease of
      • City-owned property ($000,000) $1,213.6 $798.5 $1,140.0 $1,200.6 $100.3 ñ ñ Down Up
      • Capital expenditures ($000,000) (excludes asset management and
      • funding agreements) $303.4 $217.6 $233.2 $216.0 $342.5 * * Up *
      • Graffiti sites cleaned 9,189 9,861 11,090 14,236 10,557 * * Up *
      • Square feet of graffiti removed (000) 5,650 5,720 6,139 7,087 5,360 * * Neutral *
      • NYC Ferry - Average monthly ridership NA NA 341,672 472,571 413,921 * * NA Up
      • « Critical Indicator “NA” Not Available ñò Directional Target * None
      • NEW YORK CITY ECONOMIC DEVELOPMENT CORPORATION | Page 295
      • SERVICE 2 Manage, maintain and enhance City assets to attract businesses.
      • Goal 2a Leverage City assets to support business growth and strengthen communities’ economic vitality.
      • During Fiscal 2020, the square footage of City assets actively managed decreased slightly to 64.4 million with an occupancy
      • rate of 98.4 percent. The decrease in square footage managed resulted primarily from the expiration of a 300,000 square
      • foot lease with a storage facility operator in Williamsburg and the reversion of the property to the NYC Department of
      • Parks and Recreation. There was also a downward revision of rentable square footage at Brooklyn Army Terminal which
      • resulted in a 240,000 square foot reduction to square footage actively managed. To support small businesses at properties
      • managed by NYCEDC during COVID-19, NYCEDC conducted outreach to its tenants to provide information and technical
      • assistance for applying to Small Business Administration support programs.
      • Performance Indicators
      • Actual Target Trend
      • FY16 FY17 FY18 FY19 FY20 FY20 FY21 5-Year
      • Desired
      • Direction
      • Capital expenditures on asset management ($000,000) $45.8 $106.9 $95.0 $67.3 $36.1 * * Down *
      • « Occupancy rate of NYCEDC-managed property (%) 93.7% 94.6% 95.0% 95.1% 98.4% 95.0% 95.0% Neutral Up
      • Portfolio revenue generated ($000,000) $208.2 $196.2 $237.2 $257.9 $223.0 * * Up Up
      • Square footage of assets actively managed by NYCEDC (000) 66,321.4 63,545.9 64,923.7 65,849.7 64,424.1 * * Neutral *
      • « Critical Indicator “NA” Not Available ñò Directional Target * None
      • SERVICE 3 Provide resources to targeted industries and businesses.
      • Goal 3a Grow and diversify the City’s economy by enhancing the competitiveness of industries and businesses.
      • During Fiscal 2020, NYCEDC served 1,585 businesses through dozens of programs designed to support emerging and
      • anchor industries in New York City. Notable accomplishments during the reporting period include the expansion of several
      • programs across the portfolio. The Grid, an initiative of the UrbanTech program, grew to serve over 135 businesses by
      • providing access to a network of peer businesses through which members can engage with new ideas, pathways and
      • opportunities to grow in the urban tech sector. Similarly, RLab, the nation’s first city-funded center for augmented and
      • virtual reality technology, has expanded to serve over 200 business this year through dedicated programming to support
      • business development. Despite these successes, COVID-19 disrupted programming in the last quarter of Fiscal 2020,
      • resulting in a slightly lower total number of businesses served compared to the previous year. Looking ahead to Fiscal
      • 2021, disruption from COVID-19 is expected to reduce NYCEDC’s ability to fund the current portfolio of business support
      • programs. However, NYCEDC remains committed to creating new opportunities to serve as many businesses as possible,
      • especially those companies hardest hit by the pandemic.
      • New York City’s businesses were severely affected by COVID-19 and the NYS PAUSE order. Due to these circumstances the
      • average unemployment rate for Fiscal 2020 increased to 7.4 percent, up from the historic low of 4.2 percent in Fiscal 2019.
      • Performance Indicators
      • Actual Target Trend
      • FY16 FY17 FY18 FY19 FY20 FY20 FY21 5-Year
      • Desired
      • Direction
      • « Businesses served by industry-focused programmatic initiatives 2,722 2,604 1,538 1,775 1,585 ñ ñ Down Up
      • Private sector jobs in innovation industries (%) (calendar year) 14.8% 14.7% 14.7% 14.6% 14.6% * * Neutral Up
      • New York City unemployment rate (%) 4.9% 4.9% 4.5% 4.2% 7.4% * * Up Down
      • « Critical Indicator “NA” Not Available ñò Directional Target * None
      • Page 296 | MAYOR’S MANAGEMENT REPORT
      • Goal 3b Facilitate private sector investments and make City investments where necessary to support business
      • growth and secure a positive return to the City.
      • The New York City Industrial Development Agency (NYCIDA) closed nine transactions during Fiscal 2020. Together, these
      • projects are expected to generate over $1.2 billion in City tax revenue, leverage more than $3.3 billion in private investment
      • and create 4,339 jobs within the first three years of their respective terms. A substantial portion of this impact was driven
      • by the closing of a transaction with BOP SE LLC, an affiliate of Brookfield Property Partners, to construct a 62-story,
      • LEED certified office building in Hudson Yards. In addition, the NYCIDA closed a transaction with Deerfield Management
      • Company for the development of a 338,000 square foot, 12-story Center for Innovation to incubate and support life science
      • companies. The facility will have space for convening and classrooms, a wet-lab incubator, modular laboratory suites and
      • office space for life science startups and high growth companies.
      • Build NYC Resource Corporation (Build NYC) closed six transactions during Fiscal 2020. Collectively, these projects are
      • expected to generate roughly $120 million in City tax revenue and leverage more than $250 million in private investment
      • over the course of their respective terms. The number of projects closed in Fiscal 2020 dropped from 17 projects during
      • Fiscal 2019, largely due to project delays stemming from COVID-19. Among the new transactions, Build NYC provided
      • financial assistance through tax-exempt bonds to Children’s Aid Society to acquire, renovate and furnish a 42,000 square
      • foot facility as part of the organization’s relocation of its headquarters from Midtown Manhattan to Central Harlem.
      • Additionally, Build NYC issued tax-exempt bonds to the Consortium for Worker Education (CWE) for the acquisition and
      • fit-out of a 9,500 square foot condominium in Manhattan, to be used for its workforce development and industry-specific
      • training and employment services.
      • The value of funding disbursed from City funding agreements in Fiscal 2020 exceeded $96 million. One notable highlight
      • was the opening of the Lower Manhattan Cultural Council’s (LMCC) Arts Center at Governor’s Island, which features over
      • 40,000 square feet of space dedicated to public performances, exhibitions, and artist residencies, visual and performing
      • arts studios and the Island’s first indoor cafe. NYCEDC also closed a funding agreement during Fiscal 2020 to support
      • Leake and Watts, a not-for-profit organization that addresses the challenges that confront individuals and families dealing
      • with poverty, disabilities and lack of access to education and basic services. This renovation project will provide funding for
      • additional classroom spaces for programs serving children and adults on the autism spectrum, as well as expanded interior
      • and exterior entryways and the installation of a new elevator to provide for better access to those with physical disabilities.
      • Performance Indicators
      • Actual Target Trend
      • FY16 FY17 FY18 FY19 FY20 FY20 FY21 5-Year
      • Desired
      • Direction
      • New York City Industrial Development Agency projects - Contracts closed 14 7 14 7 9 * * Down Up
      • « – Projected three-year job growth associated with closed
      • contracts 3,639 252 15,201 254 4,389 ñ ñ Up Up
      • « – Projected net City tax revenues generated in connection
      • with closed contracts ($000,000) $312.6 $64.3 $2,368.7 $63.7 $1,244.6 ñ ñ Up Up
      • – Private investment leveraged on closed projects ($000,000) $942.2 $104.1 $7,412.4 $163.5 $3,368.8 * * Up Up
      • Build NYC Resource Corporation - Contracts closed 28 15 15 17 6 * * Down Up
      • « – Projected three-year job growth associated with closed
      • contracts 321 419 251 278 67 ñ ñ Down Up
      • « – Projected net City tax revenues generated in connection
      • with closed contracts ($000,000) $411.2 $169.8 $87.0 $297.2 $121.4 ñ ñ Down Up
      • – Private investment leveraged on closed projects ($000,000) $1,404.3 $564.1 $616.3 $1,000.4 $252.2 * * Down Up
      • Value of funding disbursed pursuant to City funding agreements
      • ($000,000) $128.7 $70.9 $63.3 $128.3 $96.7 * * Neutral *
      • « Critical Indicator “NA” Not Available ñò Directional Target * None
      • NEW YORK CITY ECONOMIC DEVELOPMENT CORPORATION | Page 297
      • SERVICE 4 Leverage City investments to support inclusive economic development.
      • Goal 4a Create economic opportunity for New Yorkers through real estate development.
      • As required by the Fair Wages for New Yorkers Act, developers and commercial tenants at projects that receive more than
      • $1 million in financial assistance from the City or NYCEDC are required to pay their employees a living wage, as adjusted
      • by the Office of the Comptroller on an annual basis. These rates will continue to be adjusted annually based on changes
      • in the Consumer Price Index. Among NYCEDC’s project portfolio, 99 percent of workers on development projects were
      • reported to receive a living wage or more in Fiscal 2019, the last year for which data is currently available.
      • Performance Indicators
      • Actual Target Trend
      • FY16 FY17 FY18 FY19 FY20 FY20 FY21 5-Year
      • Desired
      • Direction
      • « Project employees reported to be earning a living wage or
      • more (%) 95% 95% 98% 99% NA 95% 95% NA Up
      • « Critical Indicator “NA” Not Available ñò Directional Target * None
      • AGENCY RESOURCES
      • Resource Indicators Actual¹ Plan²
      • FY16 FY17 FY18 FY19 FY20 FY20 FY21 5yr Trend
      • Personnel 468 531 518 535 529 545 541 Up
      • Capital commitments ($000,000) $185.5 $338.8 $320.0 $397.4 $276.4 $890.6 $947.0 Up
      • ¹Actual financial amounts for the current fiscal year are not yet final. Final fiscal year actuals, from the Comptroller's Comprehensive Annual Financial Report, will be reported
      • in the next PMMR. Refer to the “Indicator Definitions” at nyc.gov/mmr for details. ²Authorized Budget Level ³Expenditures include all funds “NA” - Not Available * None
      • SPENDING AND BUDGET INFORMATION
      • Unit of Appropriation
      • Expenditures
      • FY19²
      • ($000,000)
      • Modified Budget
      • FY20³
      • ($000,000) Applicable MMR Goals4
      • 006 - Economic Development Corporation (OTPS)¹ $57.4 $154.7 All
      • ¹EDC is contained within the Department of Small Business Services and appropriations are made through that agency. These figures are limited to the City’s contribution and
      • planned contribution respectively, to EDC. ²Comprehensive Annual Financial Report (CAFR) for the Fiscal Year ended June 30, 2019. Includes all funds ³City of New
      • York Adopted Budget for Fiscal 2020, as of June 2020. Includes all funds. 4Refer to agency goals listed at front of chapter. “NA” Not Available *None
      • NOTEWORTHY CHANGES, ADDITIONS OR DELETIONS !
      • • The indicators ‘Outstanding violations at the beginning of the period’ and ‘Outstanding violations closed during the
      • period’ under Goal 2a have been retired as they do not clearly reflect the goal. A replacement indicator will be included
      • in the Preliminary Fiscal 2021 Mayor’s Management Report.
      • ADDITIONAL RESOURCES
      • For more information on the agency, please visit: www.nyc.gov/edc.
      • Page 298 | MAYOR’S MANAGEMENT REPORT
MMR - FY20 - New York City Economic Development Corporation