Operations: Accomplishments: Investing in Physical Infrastructure

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1 Operations: New York City Economic Development Corporation ( NYCEDC or the Corporation ) is the City's primary vehicle for promoting economic growth in each of the five boroughs. We work to stimulate investment in New York City across industry sectors and broaden the City's tax and employment base, while meeting the needs of businesses both large and small. In order to retain or create jobs in the City, NYCEDC engages in a variety of activities, including, but not limited to property sales and leases, capital projects (including infrastructure improvements), planning and strategic planning, financial incentives, dealing with energy matters and management of City properties. Accomplishments: Investing in Physical Infrastructure Our plans for the City s physical transformation extend from a pledge made by Mayor Bloomberg that we will not repeat mistakes made in the 1970s and 1980s, when the City balanced its budget by cutting investment in new infrastructure and failed to maintain existing infrastructure. This strategy proved disastrous, costing billions and taking decades to reverse. We also know that, with increases in population and the anticipated effects of climate change, we must invest in measures that will make our City more resilient. Therefore, over the next five years, the City will make capital commitments totaling about $40 billion, a near-record level of spending. The expansive array of infrastructure investments includes investments in basic infrastructure, like pipes, wires, and transportation systems. But basic infrastructure is only a part of our infrastructure plan; we will also invest in core amenities: the physical assets that serve as magnets for the talent that is so critical to the City s success. Finally, our physical infrastructure strategy also includes area-wide redevelopment, or creating the conditions to improve traditionally private infrastructure, like homes, offices, and stores, in neighborhoods across the five boroughs. Hurricane Sandy Resiliency and Recovery Investments In the wake of Hurricane Sandy, NYCEDC worked quickly to bolster City assets and bring our facilities back up to operational standards. NYCEDC ensured the East River Ferry could begin operating after the storm and repaired cruise terminals and NYC food markets while securing other City-owned operations and properties. Financial Assistance NYCEDC and NYC Department of Small Business Services (SBS) developed the City s Emergency Loan Fund in the immediate days after Hurricane Sandy to help impacted businesses return to operations as quickly as possible. NYCEDC continues to work with SBS to offer loans and grants to businesses in need as they consider long-term resiliency improvements and repairs. 1

2 Shared Space and Resources In the immediate aftermath of the storm, NYCEDC organized a shared workspace and resource database for businesses in need of temporary workspace and other services post-sandy. Businesses across the city generously offered space and services to impacted businesses and NYCEDC helped connect these donations with impacted businesses. Expanded Ferry Services Many New York City residents experienced transportation difficulties after Hurricane Sandy, making the return to a normal routine more difficult. In November 2012, NYCEDC helped implement weekday ferry service between the Rockaways and Pier 11 in Lower Manhattan, a service that will run through Labor Day. The Rockaway ferry service has allowed for more than 90,000 passenger trips since its initial launch in November, and since the extension of the weekday ferry service in May 2013, the average daily ridership is approximately 700 passenger trips. Also in May 2013, NYCEDC announced a free Red Hook Summer Ferry that will operate weekends throughout the summer. The expanded service will provide convenient access to the neighborhood s dynamic commercial corridor and connect New Yorkers and visitors to small businesses impacted by Hurricane Sandy. A Stronger, More Resilient New York In the aftermath of Hurricane Sandy, Mayor Bloomberg launched the Special Initiative for Rebuilding and Resiliency and charged it with recommending steps the City should take to protect against the impacts of climate change. Under the leadership of NYCEDC President Seth W. Pinsky, and using the foundation built through the City s comprehensive sustainability agenda, PlaNYC; the Special Initiative produced the 430- page report, A Stronger, More Resilient New York, with more than 250 specific recommendations to further fortify the city against climate events. Neighborhood Game Changers The Neighborhood Game-Changer Investment Competition is a City initiative to create economic growth in five areas across New York City that were heavily impacted by Hurricane Sandy. Funded through $90 million in Federal aid, as part of the $1.77 billion in Hurricane Sandy recovery initiatives approved by the Federal government in May, the Game-Changer competition was launched in June 2013 to identify transformational projects that will catalyze significant long-term economic growth in the East and South Shores of Staten Island, Southern Manhattan, Southern Brooklyn, the Brooklyn-Queens Waterfront, and South Queens. The competition aims to identify and fund projects that will leverage private investment for capital-intensive projects, generate economic activity by increasing demand for goods and services, improve accessibility to affected neighborhoods, and expand the customer base for local businesses. It also aims to support small businesses and create jobs, particularly for low- and moderate-income individuals. The Neighborhood Game Changers Competition is one of several RFPs that will be announced in 2013 to help businesses and neighborhoods affected by Sandy attract demand and increase resiliency. 2

3 Waterfront and Open Space Waterfront Vision and Enhancement Strategy In March 2011, Mayor Bloomberg, Council Speaker Christine C. Quinn and City and federal officials, including officials from NYCEDC, introduced the New York City Waterfront Vision and Enhancement Strategy (WAVES), a multi-agency, citywide initiative designed to create a blueprint for the long-term sustainability of the City s 578 miles of shoreline. WAVES has two core components: Vision 2020: The New York City Comprehensive Waterfront Plan, which establishes a strategic land-use framework for the next decade and beyond; and The New York City Waterfront Action Agenda, which commits to a list of priority projects to be implemented over the next three years. The initiatives described in the WAVES plan address a broad range of issues, including open space and recreation, the needs of our working waterfront, climate change, and waterborne transportation. Reconnecting the City s Waterfront NYCEDC is working to reinvigorate the City s waterfront, rebuilding from the damage of Hurricane Sandy and improving waterfront access. A Request for Proposals was issued for an operator of several vessel berthing locations in New York Harbor. This effort will increase the usage of City docks by activating underutilized sites, streamlining licensing processes, increasing options for boat access, optimizing existing docking locations, and attracting new businesses to the Brooklyn, Manhattan, and Staten Island waterfronts. The selected operator will manage, license, market, and improve berthing facilities at portions of Atlantic Basin and Brooklyn Army Terminal in Brooklyn; West Harlem Piers Park; Pier 36; Skyport Marina; and potentially Stuyvesant Cove in Manhattan and Homeport in Staten Island. This comprehensive approach to operating City-owned piers will provide vessel operators with a single point of contact in identifying ideal berthing locations, thereby unlocking local economic development potential while optimizing maritime uses at each location. The RFP is part of the Waterfront Vision and Enhancement Strategy, a sustainable blueprint for New York City s waterfront and waterways initially launched by the City in May The plan will reconnect New Yorkers and visitors to the water, by transforming the City s waterfront with new parks, new industrial activities and new housing, and capitalizing on the City s waterways to promote water-borne transportation, recreation, maritime activity and natural habitats. The plan has two components: (1) a three-year action agenda comprised of 130 funded projects, including the development of more than 50 acres of new waterfront parks, creation of 14 new waterfront esplanades and introduction of new commuter ferry service; and (2) Vision 2020: New York City Comprehensive Waterfront Plan, a framework for the City s 520 miles of shoreline for the next decade and beyond. The 130 action agenda projects are expected to create 13,000 construction jobs and at least 3,400 permanent maritime and industrial jobs. It is the first citywide plan for the waterfront in nearly two decades and the first ever comprehensive plan for the waterways themselves. 3

4 The High Line In September 2012, Mayor Bloomberg, City Council Speaker Quinn, and Friends of the High Line broke ground on the third and final section of the High Line, a formerly abandoned elevated rail structure running along Manhattan s West Side. The third section is located between West 30th and West 34th Streets to the south and north, and 10th and 12th Avenues to the east and west. This work builds on the 2011 completion of the second section of the High Line. Since the opening of the park s first section in 2009, the High Line Park has emerged as a destination for tourists and residents alike and has attracted an estimated ten million visitors. The park has also contributed significantly to the economic growth of the neighboring areas, with approximately four million-square-feet of new development and an estimated $2 billion in private investment occurring in the area since the High Line opened. South Bronx Greenway This year substantial progress was made on the South Bronx Greenway, which is vastly improving access to the waterfront, providing much-needed recreational opportunities, improving transportation safety, and enhancing the network of bike and pedestrian paths on the South Bronx peninsula. In the summer of 2012, NYCEDC, elected officials, and community groups celebrated the opening of Hunts Point Landing, a new 1.5 acre public open space which includes a new fishing pier, a kayak launch, and a restored shoreline with new tidal pools that naturally mitigate storm water runoff. In addition to Hunts Point Landing, both the Hunts Point Avenue/Spofford Avenue and Lafayette Avenue streetscape projects were completed in 2012 to create a greenway network that connects Hunts Point residents to the waterfront open spaces and helps deter trucks from traveling through the residential core. NYCEDC is now completing design on two other South Bronx Greenway initiatives, Food Center Drive and the Randall s Island Connector, both of which are expected to start construction over the next year. Staten Island Wheel/ Retail As part of NYCEDC s ongoing efforts to stimulate activity along the Staten Island waterfront, the agency announced plans in September 2012 to build the world s largest Ferris wheel (the New York Wheel ). The Wheel will accompany development of a new retail complex and hotel on sites adjacent to Richmond County Bank Ballpark in St. George. The New York Wheel will be built just to the north of the ballpark and be 625 feet tall 84 feet higher than the Singapore Flyer, currently the tallest Ferris wheel in the world. BFC Partners will construct Harbor Commons, a 350,000-square-foot retail complex featuring 100 designer outlet stores and a 120,000-square-foot hotel on the site. Together the complex and wheel projects will generate a $480 million private investment, and create over 1,200 construction jobs and 1,100 permanent jobs. Transmitter Park In an effort to expand sustainable open space in Brooklyn, NYCEDC opened the WNYC Transmitter Park in September WNYC Transmitter Park is an open space located on the Greenpoint waterfront on the shore of New York City s East River. The site of the former WNYC radio station and a ferry terminal, the land will be redeveloped into green 4

5 waterfront space open to residents. Residents and community members participated in the design process to provide a meaningful community resource for the area. The former WNYC radio broadcasting building is anticipated to be converted into a café. Transportation Jackson Avenue Streetscape and Public Art In 2011, NYCEDC completed construction of phase one improvements to this central corridor in the Long Island City business district. Jackson Avenue s transformation into an attractive boulevard with a new median, landscaping, new streetlights, and pedestrian-friendly pocket parks is expected to encourage additional commercial development throughout the surrounding community. In 2012, the design process began for phase two of the project, which will include public art, fencing under ramps of the Ed Koch Bridge, and netting for Green Streets. Phase two construction is expected to start in 2013 and be completed in Staten Island Water Siphon In April 2012, Mayor Bloomberg and Port Authority Executive Director Patrick Foye announced the commencement of a $250 million construction project to dig a new water transmission main known as a siphon between Staten Island and Brooklyn. The siphon will allow for the removal of two existing tunnels that are currently at a much shallower depth, enabling the dredging and deepening of the Anchorage Channel, a process critical for accommodating increased cargo volumes and larger vessels in future years. Without this project, larger ships are unable to clear the Verrazano Bridge, thereby limiting access to New York City s ports and giving an enormous advantage to other East Coast ports in the ongoing competition for jobs and economic activity. The Port of New York and New Jersey is the largest on the East Coast, handling nearly 40 percent of the East Coast shipping trade, and is the third-largest port in the country, providing more than 279,000 jobs to the local economy and $12 billion in annual wages. The dredging project which will also create 275 construction jobs and increase drinking water reliability for 500,000 Staten Island residents - is being managed by the Port Authority and the U.S. Army Corps of Engineers. The project sustained significant damage during Hurricane Sandy and NYCEDC is working now to safely begin construction on this important project as soon as possible. Mixed-Use Space The Hub at 149 th Street In late 2012, Triangle Equities and NYCEDC closed on the purchase and development of The Hub at 149 th Street site in the South Bronx. With its prominent position at the corner of East 149th Street and Bergen Avenue near the well-known Hub in the South Bronx, this development will support an important emerging commercial corridor. Triangle Equities plans to commit approximately $40 million in private investment to develop two new buildings on the parcels, providing a variety of amenities including a new supermarket, restaurants, office space, and more than 15,000-square feet of new 5

6 retail space. The development is projected to create hundreds of permanent and construction jobs. Webster Avenue In April 2013 NYCEDC released a vision plan for Webster Avenue, a major thoroughfare extending from the neighborhoods of Melrose to Woodlawn in the Bronx. The vision plan focuses on the approximately 1.5-mile long section between Fordham Road and Gun Hill Road, where a convergence of City initiatives and private investment is poised to transform Webster Avenue into a vibrant mixed-use district. At the request of Four Bronx Institutions Alliance (FBIA) Fordham University, Montefiore Medical Center, The New York Botanical Garden, and the WCS s Bronx Zoo and in collaboration with community stakeholders, the Mayor s Office and the City of New York, NYCEDC facilitated a targeted planning process to revitalize Webster Avenue as a neighborhood main street, capitalizing on its proximity to the anchor institutions and a 2011 rezoning by the New York City Department of City Planning that projects 430,000 square feet of new commercial development and more than 950 additional residential units. The plan seeks to make Webster Avenue a place to live, work, shop and enjoy unique cultural experiences as well as a hub for entrepreneurs, researchers and students to foster new businesses and academic collaborations. Area-Wide Development Willets Point This past year, following decades of challenges and setbacks, NYCEDC made significant strides in its effort to redevelop Willets Point, a 62-acre site in Queens that suffers from environmental contamination and has limited connectivity to the City s basic infrastructure. On March 18, 2013 the City Planning Commission certified into the Uniform Land Use Review Procedure an application from the Queens Development Group, LLC and the New York City Economic Development Corporation for special permits from the City Planning Commission to facilitate surface parking and active recreation on four adjacent zoning lots located within the Special Willets Point District. This certification followed the selection of in May 2012 of the Queens Development Group, a joint venture between Sterling Equities, Inc. and Related Companies, to develop and transform the long-blighted Willets Point into a dynamic mixed-use neighborhood and destination. The historic realization of this community-driven vision, approved by the New York City Council in 2008, is the culmination of more than 50 years of development efforts and has been more than a decade in the making. The City now has agreements with, or owns, nearly all of the property in the portion of the site on which construction is anticipated to first occur. In September 2012 the City and the Queens Development Group began the process of updating the existing environmental impact statement. Phase 1 of the project will include the acquisition by the Queens Development Group of 23 acres of land to the east of Citi Field and will create a retail and entertainment attraction to the west of Citi Field, allowing for a more comprehensive and continuous transit-oriented development around access to the 6

7 Mets/Willets Point stops on the 7 train and Long Island Rail Road. The build-out of this phase will include retail, hotel, and commercial uses to complement a residential community of 2,500 housing units, of which 35 percent will be affordable. Ultimately, the plan will build over 5 million square feet of new development in a unified district, transforming a contaminated area into a new neighborhood. Additional phases of the full 62-acre Willets Point Redevelopment Plan remain unchanged, with the overall development of Willets Point allowing for up to 5,500 units of housing, a convention center and a central eight-acre park. The 30 year total economic impact of the project is $25 billion with a 30 year benefit to the City of $1.3 billion. Hunter s Point South Hunter's Point South is a proposed multi-phase mixed-use, middle-income housing development situated on approximately 30 acres of prime waterfront property in Long Island City, Queens. NYCEDC broke ground on the second phase of the development in March 2013, with phase one of construction expected to be complete in The City selected a development team led by The Phipps Houses, Related Companies, and Monadnock Construction in February 2011 to build the first phase of the project, which will include 900 units of housing, 1.5 acres of open space, and 20,000 square feet of retail space. All of the housing constructed in this phase will be for low, moderate and middle-income families. Construction of a new public school to be built by the New York School Construction Authority and the project s waterfront park is also underway at the site. Upon final build-out, Hunter s Point South will include 5,000 units of housing, at least 60% of which are to be affordable to middle-income New Yorkers. Altogether, the project, which is to be the largest affordable housing complex built in New York since the 1970s, is expected to generate $2 billion in private investment and to create more than 4,600 jobs. Homeport at the New Stapleton Waterfront In June 2013, Mayor Bloomberg and Ironstate Development broke ground on construction on the New Stapleton Waterfront Development Plan, a major communitydriven project that will create new housing, retail and a waterfront esplanade at the former Homeport site on Staten Island. Ironstate, which was selected in 2009 to lead the project after a competitive bid, will invest $150 million to construct approximately 900 units of residential housing, 20 percent of which will be affordable, as well as 30,000 square feet of ground floor retail, and 600 parking spaces. The City is committing $32 million towards the project for infrastructure improvements and the construction of a new waterfront esplanade providing the public with waterfront access. This collaborative project is the result of Mayor Bloomberg s Homeport Task Force, which was convened to help transform the former U.S. Naval Homeport on Staten Island s North Shore, and will lead to the activation of an underutilized waterfront by creating new housing, retail and significant improvements in critical public infrastructure. As part of the New Stapleton Waterfront Development Plan, the City and its partners have also addressed the potential for future major storms, with all planned buildings on the site having been elevated by two feet and a new set of tidal wetlands being built to mitigate possible storm surges and flooding. The project is a key part of the City s 7

8 comprehensive strategy to further promote economic growth on the North Shore of Staten Island, which will include the construction of the New York Wheel, the largest Ferris wheel in the Western Hemisphere; a new mall, Empire Outlets; and the Lighthouse Point development project. The first phase of the new Stapleton waterfront project is anticipated to create more than 1,100 construction jobs and 150 permanent jobs, providing a significant impact to Staten Island s economy. Seward Park Extension Urban Renewal Area In October 2012, the Seward Park Mixed-Use Development Project received full land use approvals through the Uniform Land Use Review Procedure (ULURP) process. The mixed-use development will reinvigorate over six acres of land that sat largely vacant for four decades, and reintegrate the area into the surrounding Lower East Side neighborhood. This site encompasses 9 City-owned properties totaling 6.5 acres the largest underdeveloped set of contiguous parcels of City-owned land south of 96 th street in Manhattan. The community- led redevelopment process will eventually result in 1.65 million square feet of permanently affordable and market-rate housing and commercial and retail space. The project will provide a dynamic streetscape, with a newly built Essex Street Market anchoring the development, and the opportunity for a diverse range of retail and other commercial uses. The project will include a locally oriented public open space and the potential for underground parking. Lower Manhattan and South Street Seaport Lower Manhattan is coming back strong from the immediate effects of Hurricane Sandy. NYCEDC helped support impacted businesses by providing loan and grant funding to support recovery in the neighborhood and bring small business owners back in business. This year development is underway to improve the South Street Seaport and complement nearby development of the East River Waterfront Esplanade. In 2012 NYCEDC worked with the Howard Hughes Corporation to redesign Pier 17 in the historic South Street Seaport district. The new retail development will help anchor commercial and business growth in the neighborhood. East River Waterfront Esplanade In early 2012, NYCEDC officially opened Pier 15, a new two-level pier, as a part of the East River Waterfront Esplanade. This pier, located just south of the South Street Seaport at John Street, has a landscaped upper deck, a café pavilion and maritime pavilion, boat docking facilities, as well as many places to sit and relax and enjoy the spectacular views. The plan for the entire two-mile long esplanade, which will ultimately stretch from the Battery Maritime Building to Pier 35, is the culmination of a nine-year design and planning process that included significant community input. Subsequent phases, which will open on a rolling basis over the next few years, will build upon the work in the pilot section. They will also provide additional recreation facilities, community and commercial pavilions, new open space, and a new Pier 35 at Rutgers Street. Structural reconstructive work at Pier 35 began in the first phase of the project and was completed in January The pier is expected to be completed and open to 8

9 the public by Spring The next portion of the project expected to open is Phase two of the esplanade, which stretches from the Battery Maritime Building north to Old Slip and is expected to open in Spring Coney Island In 2003, after years of disinvestment in Coney Island and the surrounding neighborhoods, Mayor Bloomberg, the City Council, and the Brooklyn Borough President formed the Coney Island Development Corporation (CIDC). In the following years, CIDC has spearheaded a comprehensive planning process and economic development strategy aimed at revitalizing Coney Island s amusement core, as well as the surrounding areas. Since the passage of the Coney Island Comprehensive Rezoning Plan in 2009 by the New York City Council, the City has achieved a number of significant milestones, including the opening of Coney Island s first new amusement parks in more than fifty years. Over the span of the next three decades, the City s investments in Coney Island are expected to create 25,000 construction jobs and 6,000 permanent jobs, and generate $14 billion dollars in economic activity. The Amusement Core In 2012, Mayor Bloomberg and Central Amusement International (CAI) announced two brand new thrill rides at Coney Island - Boardwalk Flight and Coney Island Raceway which are part of the second phase of development of the Scream Zone amusement park. Scream Zone also expanded in 2012 to now include a total of 6 new high thrill rides including roller coasters, sling shots and go-carts. Along with Luna Park, the Scream Zone helped draw a record number of visitors back to Coney Island s amusement core since efforts began to improve the area in In 2012 there were 759,000 visitors to Luna Park and the Scream Zone, taking more than 2.6 million rides at both parks combined. This is an increase of 120,000 more visitors and 600,000 more rides than the previous year. In addition to the new Scream Zone rides, 2012 marked the opening of a number of new attractions and amenities along the legendary boardwalk including an outpost of longtime Brooklyn diner Tom s Restaurant as well as the return of Coney favorites like Deno s, the Cyclone, Gargiulo s, Cha Cha s, Nathan s, Paul s Daughter, Ruby s and Lola Star. CAI has invested $30 million to open and operate both parks, working with the City s hiring program, HireNYC, to fill more than 600 positions with local New Yorkers during the 2012 summer season. Infrastructure Improvements The City invested more than $6.6 million to support the opening of Luna Park and Scream Zone. As part of the City s Coney Island Revitalization Plan, the City is also investing more than $150 million in infrastructure improvements in Coney Island, including upgrading infrastructure and rebuilding large sections of the Boardwalk. Last year, New York City Economic Development Corporation, in 9

10 collaboration with the Department of Environmental Protection, completed an Amended Drainage Plan to guide upgrades to subsurface infrastructure throughout the entire rezoning area, the first phase of which is currently in design and is expected to break ground by early The City has also seen significant progress on a number of additional key components of the Coney Island Revitalization Plan this past year, including groundbreakings for Steeplechase Plaza and for Coney Island Commons, which will include 195 units of affordable housing and a new state-of-the-art 40,000 square foot YMCA. 10

11 Neighborhood Developments and Amenities Downtown Brooklyn Cultural District NYCEDC has worked closely with Brooklyn Borough President Marty Markowitz, the New York City Department of Cultural Affairs, and the New York City Department of Housing Preservation and Development to support and expand the Downtown Brooklyn Cultural District. In November 2012 plans were announced for the final remaining Cityowned parcels in the district. Gotham Organization and DT Salazar, Inc. will develop 600 units of housing, 300 of which will be affordable, as well as new cultural, community and commercial space on a site bounded by Fulton Street, Rockwell Place and Ashland Place. Two Trees Management Company began the public review and approval process for development of 50,000 square feet of new creative, cultural and community space, along with a dynamic new public plaza. The City Department of Housing Preservation and Development also released an RFP in 2012 to complete development of City-owned land. In June 2011, NYCEDC broke ground on a new permanent home for Theater for a New Audience. The space will house a three-level 299-seat theater, a rehearsal room, a public lobby, and various supporting spaces. When completed, the project will provide a state-of-the-art venue for this acclaimed theater company s interpretations of Shakespeare and other classical works of drama. The project will also create 175 construction jobs and support the theater s 20 full-time and 100 seasonal employees. Loews Theater In the past year, NYCEDC, along with Borough President Marty Markowitz, continued to make progress on the revitalization of the Loews Kings Theater in Flatbush. This historic theater, initially constructed in 1929, closed its doors in the 1970s and has remained vacant ever since. In 2009, NYCEDC selected ACE Theatrical to reactivate the 89,000 square-foot space as a performance venue, which is expected to generate approximately 510 construction jobs and 50 permanent jobs and bring this historic site back to its original luster. Loews Kings Theater is currently undergoing preparatory restoration work and is scheduled to break ground in early 2013 and reopen in Broadway Plaza In June 2013, NYCEDC announced plans for a 133,000 square foot retail development at Broadway Plaza in the Bronx, which will activate an approximately 80,000 square foot site located along the Broadway retail corridor. The developer, Equity One, plans to invest approximately $54 million to construct the two-story, multi-tenant retail development and approximately 130 covered parking spaces that will make up the site, which is located on 230th Street between Broadway and the Major Deegan Expressway. The project is expected to create over 250 new full and part-time jobs and approximately 500 construction jobs. The developer purchased the site from the City in June 2012 and expects the center to open in the fall of Equity One was selected to redevelop the site based on its response to a Request for Proposals issued in August The development intends to be LEED-certified. 11

12 Kingsbridge National Ice Center In May 2013, Mayor Michael R. Bloomberg announced plans to transform the iconic Kingsbridge Armory in the Bronx vacant since 1996 into the world s largest indoor ice facility. The landmark armory, which occupies a full City block at 29 West Kingsbridge Road, will be redeveloped into a 750,000-square-foot ice sports facility to be known as Kingsbridge National Ice Center (KNIC). KNIC will feature nine year-round indoor regulation size ice rinks, including a feature rink that can seat approximately 5,000 people and be used to host national and international ice hockey tournaments, figure and speed skating competitions and ice shows. The project will also include 50,000 square feet of space designated for community uses. It is expected that KNIC will draw more than 2 million visitors a year, vastly increasing the options of ice facilities in New York City, where there are currently only seven year-round ice rinks, none of which are located in the Bronx. The project represents a private investment of $275 million, which will generate 890 construction jobs and 267 permanent jobs. Rockaway Courthouse In April 2013, NYCEDC announced the selection of a developer for the long abandoned Rockaway Courthouse, with plans to redevelop the property into a new medical center, providing a vital resource for the surrounding neighborhood. Located at Beach Channel Drive, the former courthouse was built in 1932, but abandoned in the mid- 1970s. Built in Ornate classical style, Rockaway Courthouse sat vacant for over 30 years, suffering significant neglect and deterioration. For over a decade, the City has been working with local stakeholders and developers to rehabilitate this historic building and restore it to an active use serving the local community. The Harmony Group was selected to renovate the building and establish a new medical center in the space featuring a multi-specialty ambulatory surgical center, which will provide new medical services for a community that recently saw the closure of a major hospital, Peninsula Hospital Center. Harmony will rehabilitate the entire building, which will house medical tenants providing medical and outpatient surgical services in specialties including ophthalmology, urology, obstetrics, gynecology, and orthopedics once construction is complete. The project is estimated to bring 64 construction and 45 permanent jobs to the Rockaways. 12

13 Cultivating Economic Transformation A 21 st century infrastructure investment supporting a 20 th century economy will get us only halfway towards our goal of transforming New York City into the 21 st Century capital of innovation. With this in mind, we are working to transform New York City s underlying economy in three critical ways. The first part of our strategy is to assist our City s legacy industries critical industries like media, fashion and industrial in transitioning to 21st Century business models. In addition, we are working to attract and cultivate those emerging industries in which New York City holds competitive advantages, but which have historically not had a strong presence here. Finally, the third piece of our economic strategy for catalyzing the City s economic growth is the support and promotion of entrepreneurship across all sectors. Industrial Growing Industrial Businesses in New York City In 2011, NYCEDC announced twenty-two initiatives to revitalize the City s industrial center by increasing access to modern space, strengthening Industrial Business Zones, and increasing access to financing resources. In 2012, following up on this important announcement, NYCEDC, along with various partners in government and the private sector, launched the following individual initiatives which are designed to achieve the City s long-term industrial goals. Food Manufacturing Expo As part of the City s continuing effort to strengthen the food manufacturing industry and showcase New York City-based food manufacturing businesses, NYCEDC offered a unique opportunity for four New York City-based food manufacturing firms to win an allexpense paid package to showcase their product at the Specialty Foods 2013 Summer Fancy Food Show. The winning companies received prizes valued at over $8,000 per company to cover the expenses related to showcasing their products. This year s Fancy Food Show followed the first City-sponsored Food Manufacturing Business Expo held in the fall of 2012, coordinated in partnership with New York City Council Speaker Christine Quinn and attended by over 150 companies. NYC Industrial Business Advisory Council The Industrial Business Advisory Council, the cornerstone of the Bloomberg Administration s initiatives to support the industrial sector, had its inaugural meeting in August This advisory body will strengthen the working relationship between industrial businesses and the City agencies and policies that support them. The City s industrial sector plays an important role in diversifying the City s economy, providing well-paying jobs to New Yorkers and enabling local consumption. Responsible for 13

14 developing, producing, storing, distributing and recycling goods, the diverse industrial sector will now be represented by 16 members serving two-year terms. The Advisory Council members - nominated by the public - range from academics to successful developers, but are predominately business owners. Members include Limor Fried, founder of Adafruit Industries, the Manhattan-based open source hardware company and Mike Schwartz, co-founder of Bad Ass Organics, a Long Island City-based urban fermentation farm with a mission of creating nutritious food and drink products. The New York City Economic Development Corporation s Industrial Desk, with the support of the Mayor s Office, acts as the convening body for the Council s quarterly meetings. The Desk will leverage its Interagency Industrial Steering Committee to involve the business community more effectively in the formation of policy and regulation rollouts. Industrial Business Zones Expansion In early 2006 the City created 16 Industrial Business Zones (IBZ) where expanded business services are available for industrial and manufacturing businesses. This designation fosters high-performing business districts by creating competitive advantages within the City compared to areas outside of New York City. The IBZs support businesses by providing tax credits for relocating within these zones, zonespecific planning efforts, and direct business assistance from Industrial Providers of NYC Business Solutions Industrial and Transportation. Given the purpose of IBZs - to foster industrial sector growth through real estate incentives - the Bloomberg Administration has stated that it will not support the rezoning of these areas for residential use. During the summer and fall of 2012, the Administration and City agencies worked to modify the boundaries of existing IBZs and proposed adding a Staten Island IBZ. The Commission charged with this task includes the Borough Presidents, a member of the industrial community, and City agency heads. The Commission is chaired by the Department of Small Business Services, with agency representation from: Department of City Planning, Department of Buildings, Department of Finance, Housing Preservation and Development, Department of Citywide Administrative Services, and the NYC Economic Development Corporation. The Boundary Commission process is public and open to input and comment from all community stakeholders. Top Makers and the Rapid Prototyping and Fabrication Industry Report In 2012, NYCEDC conducted a study to determine ways to enhance the City s value proposition in the rapid prototyping and fabrication sub-sector. Rapid prototyping and fabrication technologies can significantly lower the cost and timeline for product development and have applications across multiple sectors. Many NYC-based entrepreneurs, especially those in engineering, industrial design and related fields, have a significant need to conduct field testing and promotion/presentation of their products. Rapid prototyping and fabrication tools such as 3D printers allow for one-off or small 14

15 runs of their products. However, this equipment is prohibitively expensive for individual entrepreneurs to purchase. The study examined the level of demand and existing capabilities already available in New York City, and recommended how to provide and market the necessary resources to meet City entrepreneurs prototyping and fabrication needs. Following the study NYCEDC launched its first ever NYC Next Top Makers competition in The goal of the challenge is to support design-driven production, and promote a culture of innovation and commercialization within New York City s industrial business, design and engineering communities. Finalists were selected in February 2013 by an expert judging panel to receive studio space and resources to develop commercial products. Finalists receive studio space from sponsor NYDesigns, as well as business support and mentorship from industry experts such as Adafruit Industries, Honeybee Robotics and Shapeways. It is anticipated that the studio phase will run from April to August Judges will award an additional cash prize to the most promising winner following the studio phase. Build NYC In December 2011, Build NYC Resource Corporation (Build NYC), a new local development corporation administered through NYCEDC, was launched and began accepting applications from New York City 501(c)(3) non-profit organizations for taxexempt financing that will allow them to build, expand or upgrade their facilities. Build NYC was created in response to the expiration in 2008 of the New York State law allowing industrial development agencies to assist non-profits financially. Following this expiration, many New York City institutions had to rely on more expensive conventional bank loans or were forced to seek assistance from out-of-state and out-of-city bond issuers in order to finance or refinance projects, thus raising financing costs for nonprofits, or, at times, forcing them to delay important projects that would have created jobs and offer additional educational, health or artistic resources to New Yorkers. Since the launch of Build NYC, 20 projects across the City have been approved by the agency, totaling more than $373 million in tax-exempt bond financing for critical nonprofit projects across the City. Recipients included New York Foundling Charitable Corp, Manhattan College, and the YMCA of Greater New York, Montefiore Medical Center, Marymount School of New York, the Browning School (closed) and Seaview Senior Living Housing Development Fund Corporation. Supporting the Air Cargo Industry In 2012, NYCEDC, in partnership with the Port Authority of New York and New Jersey, conducted and released an in-depth study of the air cargo industry in order to identify opportunities to increase and expand this critical sector of the economy. Supported by funds from NYCIDA and the Port Authority, this study aims to provide actionable steps to reverse the stagnation in air cargo volume at JFK airport. JFK remains the largest international gateway in the US and air cargo operations today directly support more than 84,000 jobs and $3.6 billion in wages, generating $10.8 billion in sales in the region. The findings of this study are expected to be released in early 2013 and will 15

16 provide a roadmap for helping the City and Port Authority to bolster the position of the airports for years to come. LINK Link The LINK Initiative (Leveraging Innovations and our Neighborhoods in the Knowledge economy) is a collection of eight pilot programs designed to connect low-income New Yorkers with opportunities in the city s knowledge economy. These programs are designed to strengthen the skills and employability of New Yorkers with low incomes and to foster business activity that provides employment opportunities for those with less formal training, helping to alleviate key challenges that prevent many from moving up the economic ladder. The LINK Initiative aims to increase opportunities for New Yorkers across the five boroughs. NYCEDC is working in partnership with the Human Resources Administration, the Center for Economic Opportunity and Small Business Services to implement the eight LINK pilot programs which include the following programs: LEAP, Learn as you Earn Advancement Program, Immigrant Bridge, DigitalWork NYC, Jobs and Economic Mobility Track in NYC BigApps, NYC Business Innovation Challenge, Vacant Lot Activation Program, PROGRESS Networks, and LIFT Entrepreneurship. Fashion Supporting the Fashion Industry In January 2010, NYCEDC launched Fashion NYC 2020, a yearlong study to examine the state of the fashion industry and identify strategies to enhance the City s position as the fashion capital of the world. Based on detailed analyses and a series of dialogues involving leading figures in the industry, emerging entrepreneurs, academics and others, NYCEDC identified two specific challenges that the industry faces in New York City. The first challenge is a need to attract young managerial talent; and the second, a need for the City to continue to enhance its standing as a hub of innovation for specialty and multi-channel retail. In November 2010, Mayor Bloomberg announced a suite of six innovative programs that have launched over the course of 2011 and 2012 with the goal of addressing these issues. In January 2013, NYCEDC launched NYC Fashion Fellows, a year-long fellowship created in partnership with the 92 nd Street Y that will identify up to 20 rising stars in fashion management and provide them with executive-level mentoring, networking and community-building opportunities. In May 2013 NYCEDC, in partnership with Fashion Institute of Technology (FIT), selected 35 emerging designers to participate in Design Entrepreneur NYC, an intensive mini-mba course. Fashion Draft NYC, selected their 2nd annual class of 21 business-minded college seniors from across the country to come to New York City to participate in a weekend of interviews for management-track positions at top fashion companies in February The 2013 session of Fashion Campus NYC will take place in July, a two-day career-building and networking event, created in partnership with Parsons New School for Design, formed to introduce interns 16

17 to the breadth of careers available on the business side of the fashion industry. In 2012 NYCEDC released a RFP for the NYC Fashion Production Fund, which will help provide emerging designers access to capital for production financing. In 2012 eleven winners were selected to participate in Project Pop-Up NYC, winners received one month of free retail or showcase space within the Chelsea-based retailer STORY, with 100% of sales going to the winning companies. Amazon (Fashion Sidebar) New York City continues to attract companies interested in taking advantage of the city s unique human capital assets and creative talent. Amazon is the latest company to recognize the creative resurgence of Williamsburg, Brooklyn, buying a 40,000-squarefoot space on Kent Avenue to expand their fashion development. Amazon plans use the space as a creative studio for photograph products for the online retailer. Amazon has six other studios but this is the company s first one devoted to fashion products, and the location could not be better for tapping into Brooklyn s creative talent. Media and Technology BigApps 4.0 In June 2013, Mayor Bloomberg, NYCEDC and the City s Department of Information Technology and Telecommunications announced the 7 winning teams of the fourth annual NYC BigApps Competition, a software competition that challenges developers to create new web and mobile applications using city data to improve quality of life for residents and visitors. The fourth year of the competition challenged developers to create apps that solve big Issues facing New Yorkers in four specific areas: Jobs and Workforce Mobility; Healthy Living; Lifelong Learning; and Cleanweb: Energy, Environment and Resilience. This year s competition received 54 eligible apps. Created in 2009, NYC BigApps has helped launch nearly 300 apps that improve the lives of New York residents, visitors and businesses. The NYC BigApps competition has also opened up over 1,000 datasets to developers around the world. Made in NY Media Center In October 2012, Independent Filmmaker Project was selected as the developer and operator of the Made in NY Media Center. In March 2012 NYCEDC, in partnership with the Mayor s Office of Media and Entertainment, announced the RFP to establish the Made in NY Media Center in an effort to build on and expand the City s thriving entertainment industry and connect to new opportunities in digital media. The media center will provide media entrepreneurs with affordable workspace and serve as a central meeting place where traditional media companies and new media entrepreneurs can meet, interact and collaborate. It will host educational workshops and training sessions catered to segments across the media industry and encourage the type of cross-sector learning and creative cooperation that will ensure that the media industry is well-positioned for the digital age. The center will also support new businesses in the field of emerging media, like interactive entertainment, digital advertising and mobile apps, by providing high-quality, ready-to-use office space. The space will also include conference rooms, production office space and a screening room. 17

18 Cultivating Emerging Industries Clean Technology & Energy Enabling Cleantech Entrepreneurship Throughout 2012 NYCEDC met with public and private sector leaders, conducting a study on the opportunities and needs of the rapidly emerging green and clean technology sector. Through workshops and interviews, NYCEDC is developing programs to support green entrepreneurship aligned with both the broader technology sector and PlaNYC, the City s sustainability vision for Clean Technology Entrepreneur Center In June 2013, NYCEDC announced plans to launch a Clean Technology Entrepreneur Center to assist cleantech and energy entrepreneurs with the unique challenges they face in starting and growing early-stage companies in New York City. The Center, a partnership with Polytechnic Institute of New York University (NYU-Poly), will concentrate activities and services in order to further develop collaboration, innovation, commercialization and entrepreneurship in New York City. Located at 15 MetroTech in Downtown Brooklyn, the Center will be assist cleantech businesses with business incubation, product demonstration and exhibition and education workshops. NYCEDC and NYU-Poly expect to launch the Center in the Fall of Accelerating the Adoption of Solar Power During Fiscal Year 2013, NYCEDC continued its partnership with the City University of New York, which was recently awarded a $3.4 million grant from the U.S. Department of Energy, to make solar energy more accessible and affordable by driving down the administrative costs. In April 2012, solar power in NYC reached 8.1MW, an increase of 800% over six years. This increase parallels the quadrupling of solar installation companies doing business in NYC since 2007, demonstrating the economic benefits of enabling the local solar market. Two new Solar Empowerment Zones, regions where solar power is most viable and beneficial to the NYC electrical grid, were also created. Zones receive a 15% incentive for solar projects among other benefits and incentives. The Solar Empowerment Zone program has seen tremendous success with the initial three zones, which increased their solar capacity by 350% in less than two years. The new zones, in Chelsea and the lower East Side of Manhattan, were selected by the Solar America City Partnership and an advisory group consisting of representatives from several City agencies and groups including Consolidated Edison, the New York Department of Public Service, NYSERDA, and the New York Power Authority. Producing Energy Efficient Heating NYCEDC s Solar Thermal Grant Pilot Program provides financial assistance for building owners to install solar domestic hot water systems. In 2012, NYCEDC completed the performance monitoring of four installations funded by the program. These businesses and institutions each received grants of up to $50,000 to install solar thermal systems, which use sunlight to heat water, reducing energy consumption and costs. The goal of the program is both to promote the use of the technology and to develop a better 18