Annual Report 2000

The Investment Challenge

New York is enjoying a resurgence that has improved virtually every aspect of City life. More people are working in the City than at any point in the last thirty years. Increased tax revenues have contributed to large budget surpluses. New businesses--from Internet start-ups to multinational corporations--have made New York home. Bedrock industries, such as real estate and financial services, are flourishing. Nearly 35 million tourists visited the City last year and spent $14.5 billion.

But as fortunes rise, our biggest problem can be our own success. Growing numbers of residents, jobs, businesses and tourists mean greater demand on housing, education, mass transit, and essential services such as electricity and waste disposal. Our emphasis must now shift from spurring growth to supporting the demands created by our success and building for the future.

Consider these facts.

• The shortage of affordable housing is at an all-time high. For middle-income families, New York is now the most expensive city in the nation for rental housing and home ownership.
• The mass transit system must accommodate 600,000 additional passengers each weekday. Highways, bridges and roads are regularly congested. Between 1997 and 1998, 3.4 million more vehicles entered the City from New Jersey, and Manhattan-bound traffic on East River Bridges increased by nearly 12,000 cars per day.
• Fifty-nine percent of the City's students attend public schools that are filled beyond capacity.

The challenges that face New York today reflect our accomplishments and successes. The building industry, and leaders in government, have the ability-- and a responsibility-- to help map our future course. To realize continued growth, New York must invest now to accommodate future demand on our infrastructure and public services.

This is what "Building for Growth" is all about.

The New York Building Congress recommends taking three steps.

Document future needs now.
While potential infrastructure projects are boundless, sources of funding are not. City, State, regional and federal leaders should come together to develop a list of capital needs, and support projects that responsibly address those needs. These projects should include: new and improved public school facilities; sufficient affordable housing units; the Second Avenue Subway; East Side access to Grand Central Terminal; a rail link to LaGuardia Airport; and extensive port development.

Make the case for "Building for Growth."
Securing these critical investments requires continued and tenacious advocacy. Leaders in the industry are best prepared to recognize the value of--and need for-- strategic capital investment. Industry leaders must, therefore, be the standard bearers for this cause in meetings with elected officials, agency heads, and business, tourism and civic leaders. The industry can also help make the case to taxpayers and let them know what is at stake.

Develop dedicated sources of funding.
Political leaders must develop sources of funding that are protected from short-term political pressures. Government must make the hard decision to create a locked box, and then resist the temptation to pick the lock.

"Building for Growth" means securing New York City's continued prosperity, stability, and position as the capital of the world.