Annual Report 2001
Page 5
New York City’s economy, especially the building industry, is as strong as ever. Rather than sit idle and be content with the current favorable climate, the New York Building Congress and its members will focus their energies in the months and years ahead on efforts to sustain and build upon this unprecedented momentum.
Recently, the Building Congress unveiled its WatchList, which summarizes key industry issues and initiatives, monitors their status, details Building Congress actions, and recommends steps others can take to support these industry concerns.
Most issues fall under two categories: infrastructure and economic development. Following is a sample of 2001 WatchList priorities.
Infrastructure
The City’s unprecedented growth is adding jobs, residents, businesses and tourists, all of which require new infrastructure to support their activities. More subway cars and buses, better schools and affordable housing, as well as improved bridges and roadways are desperately needed. While public officials have demonstrated a growing commitment to infrastructure investment, the majority of current capital programs are devoted to maintaining, rather than expanding the existing infrastructure. Furthermore, the revenue streams critical to advancing these capital programs are far from assured.
New York State Transportation Financing – The defeat of the Transportation Bond Act last November created a combined $3.8 billion gap in the NYS Department of Transportation and MTA capital programs. Unless new revenue sources are found, both agencies will be forced
to pare back on expansion and improvement projects.
The Building Congress is seeking the support of Governor Pataki and the State Legislature for full funding in order to move forward with such capacity- building projects as a Second Avenue Subway and a rail link to LaGuardia Airport.
Energy Needs – Assuring the availability and affordability of reliable electricity has never been more critical in New York City. While the demand for electricity has soared in recent years, no significant new supply has been added in decades. In addition, the advent of deregulation has dramatically changed energy pricing. The Building Congress has made the expedited approval and construction of new electric generation facilities, which would stabilize both supply and price, a top priority in the coming year.
The Space Crunch – Companies seeking to expand within or relocate to New York City require adequate office space as well as affordable housing and modern schools for their employees. The Building Congress is working with public officials and other organizations to: spur office development, especially in boroughs outside Manhattan; create affordable housing through incentives, public subsidies and brownfields legislation; and, expedite school construction through implementation of the Board of Education’s capital program and by endorsing federal tax credits to holders of school construction bonds.
Economic Development
Sustaining New York’s economic momentum also requires investment in facilities that will further distinguish the City as a financial, corporate and cultural capital, as well as a premier tourist destination. The following projects offer rewards in terms of jobs, tax revenues and related development that will far exceed the City’s initial investment.
Expansion of New York Stock Exchange – The New York Stock Exchange in Lower Manhattan serves as the anchor of the City’s financial center. In a new, larger home directly opposite the current address, the Exchange will employ 14,000 people and generate more than $1.6 billion in wages and salaries. The Building Congress is monitoring and supporting the project as it moves through the approval process.
Jacob K. Javits Convention Center Expansion – At the core of the development of Manhattan’s West Side, as well as that of the City’s tourism and convention sector, is expansion of the Javits Convention Center. Public financing of the project would be offset by additional hotel and tourist revenue, generated through an expanded center’s ability to attract more events and visitors.
Museum Expansions – The Building Congress is supporting efforts to build a second New York City Guggenheim Museum above Piers 9, 13 and 14 on the East River, and
an expanded Museum of Modern Art. These projects will further solidify the City’s reputation as a center for the arts and ensure its position as a leading cultural destination for international tourists.
Queens West – The Building Congress is working with the Empire State Development Corporation to help move forward this mixed residential/commercial complex which, when complete, will serve as a model for development in the City’s outer boroughs.
WatchList is updated monthly on the Building Congress Web site and mailed periodically to all members. Comments and suggestions for issues included are welcome.
