December 2017 Planning for THE NEW YORK CITY COUNCIL Retail Diversity MELISSA Supporting NYC’s Neighborhood Businesses MARK-VIVERITO SPEAKER THE COUNCIL OF THE CITY OF NEW YORK MELISSA MARK-VIVERITO CITY HALL TELEPHONE SPEAKER NEW YORK, NY 10007 (212) 788-7210 JulyDear 21,Fellow 2014 New Yorkers, While headlines often go to major multinational corporations whose names adorn Manhattan Dearskyscrapers, Colleagues much inof Government:the economic engine of our city is contained in the countless storefronts that line our blocks. These spaces are home to the retail and food service entrepreneurs that employ more Itthan is with 600,000 great people, pleasure provide that critical we share goods with and you services the New to the York city’s Cityresidents, Council’s and contribute Fiscal Year to each 2014neighborhood's-15 Federal unique Budget character. and Legislative Agenda. FromHowever, expanding all is not paid well sickwith ourleave city’s to providingretail sector; free low-income pre-K fo communitiesr all 4-year-olds continue in New to lack York City toessential adopting goods a balanced, and services fiscally and the re highest-endsponsible budget retail corridors that will are greatly pockmarked improve with the vacancies lives of dueall Newto ever Yorkers, increasing the rents. City Additionally,Council and e-commerce the de Blasi nowo Administration takes almost 10% have of retail made sales significant nationwide, stridesposing athese growing past threat seven to months our neighborhood implementing businesses. our shared vision for a more equal and just NewGiven York these City. challenges, the Speaker's 2016 State of the City address called for the Council to explore zoning reforms and other tools for protecting and promoting retail businesses. In September of 2016, However, there’s much more that we can accomplish with Washington’s support. the Council held a hearing on zoning and incentives for promoting retail diversity and preserving Outlinedneighborhood in the character following at which pages we are heard some concerns of the federal and proposals budget from and alegislative wide variety priorities of advocates that weincluding believe chambers are critically of commerce, important community-based to the future of organizations, our city and trade all New associations, Yorkers, business including: improvements districts, elected officials, and small business owners. The• LandExtending Use and Financeunemployment staff has insuranceexamined thesebenefits proposals to unemployed and also done families extensive as they background continue researchtheir on the job state hunt; of the retail economy in New York City. Contained in this report are the results of that• researchBringing and New a set York of strategies City Housing to address Authority the challenges facilities faced – by which our storefront are home retail to more and than restaurant400,000 businesses. New Yorkers – into a state of good repair; • Strengthening gun laws to help prevent further violence and mass shootings; and It is •incumbent Creating upon pathways the administration to citizenship and andthe Councilensuring to that address immigrants the issues and facing their the families retail can storefrontcontinue economy. to Itthrive is our in hope our that city. this report will serve as a blueprint for comprehensive policy to foster retail diversity, affordability, and access throughout all New York City neighborhoods. While these priorities focus primarily on New York City, many of them would be of great benefit to cities and metropolitan regions across the U.S., and we look forward to working withSincerely, you and President Obama to help push forward an agenda that’s good for our city and good for our entire country. IfMelissa you have Mark-Viverito any comments or concerns aboutRobert the priorities Cornegy, outli ned in this agenda, please feel freeSpeaker to contact us at any time. Thank you. Chair, Committee on Small Business Sincerely, David Greenfield, Donovan Richards Chair, Committee on Land Use Chair, Subcommittee on Zoning and Franchises Melissa Mark-Viverito Jimmy Van Bramer Julissa Ferreras Karen Koslowitz Speaker Majority Leader Chair, Finance Chair, State & Fed. Leg. Contents 2 0 0.5 1 miles ´ Executive Summary Upper West Side 6 9 A Brief History of Retail Planning Policy Recommendations: in New York City Citywide Planning 10 26 Recommendations: The State of Retail Data Collection & in New York City Further ResearchBroadway Bedford-Stuyvesant 29 40 4th Avenue Park Slope Current Zoning & Recommendations: East New York Land Use Policies Zoning & Land Use 47 50 Recommendations: Neighborhood Retail Neighborhood Planning & Planning Policies Economic Development 54 58 Recommendations: Current Tax Policy & Tax Policy & Financial Incentives Financial Incentives PLANNING FOR RETAIL DIVERSITY 1 NEW YORK CITY COUNCIL Executive Summary s E.B. White so vividly described in his 1949 essay “Here Planning For Is New York,” New York is comprised of thousands of tiny neighborhood units that make the vast size of the Retail Diversity A city as livable as a small town. At their most functional, residential neighborhoods each have a sufficient diversity of retail stores and services to support all the needs of daily life. While some of the necessary businesses of 1940s New York are now obsolete, most are still very much a part of the most self-sufficient neighborhoods: groceries, movie theaters, dry cleaners, coffee shops, drug stores, hardware stores, shoe repair shops, and florists. And as White suggests, such independent retailers are known for contributing to each neighborhood’s unique character. ...the curious thing about New York is that each large geographical unit is composed of countless More than a mere anecdote, studies have shown that retail small neighborhoods. Each neighborhood is virtually diversity - the availability of a wide array of necessary goods and self-sufficient. Usually it is no more than two or three services at a variety of price points – contributes significantly to the blocks long and a couple of blocks wide. Each area is a health of a neighborhood’s economy and its residents.1 city within a city within a city. Thus, no matter where The rationale to undertake a comprehensive, coordinated you live in New York, you will find within a block or policy initiative to support retail diversity in New York City can be two a grocery store, a barbershop, a newsstand and summarized in five points: shoeshine shack, an ice coal-and-wood cellar (where • City government should seek to ensure that critical neighborhood you write your order on a pad outside as you walk service retail is available in every neighborhood. The availability by), a dry cleaner, a laundry, a delicatessen (beer and of fresh food, health clubs, and pharmacies helps keep residents sandwiches delivered at any hour to your door), a healthy and fit, and the presence of essential goods and services flower shop, an undertaker's parlor, a movie house, a like tailors and hardware stores improve residents’ daily lives by radio-repair shop, a stationer, a haberdasher, a tailor, a drugstore, a garage, a tearoom, a saloon, a hardware saving travel time. store, a liquor store, a shoe-repair shop. Every block or • Retail and restaurant small businesses are a crucial vehicle for two, in most residential sections of New York, is a little entrepreneurship, especially among recent immigrants.2 main street... So complete is each neighborhood, and • Locally-owned businesses are an economic multiplier and so strong the sense of neighborhood, that many a New recirculate a higher percentage of their revenues within the local Yorker spends a lifetime within the confines of an area economy. 3 smaller than a country village. Let him walk two blocks • New York City’s over 50,000 retail and restaurant businesses from his corner and he is in a strange land and will feel employ nearly 610,000 people, providing more than one in seven uneasy till he gets back. private sector jobs.4 -E.B. White “Here Is New York” • Retail diversity and character are unique assets that create value and attract tourism. PLANNING FOR RETAIL DIVERSITY 2 NEW YORK CITY COUNCIL Executive Summary Recommendations As important as it is to urban life, retail diversity CITYWIDE PLANNING - PAGE 9 is now threatened where it has long contributed to 1. Designate the Department of Small Business New York City’s most prosperous neighborhoods and Services (SBS) to manage planning and policy it remains elusive in some of the city’s lower-income for retail storefronts areas. This report analyzes data from the Quarterly The administration should designate SBS to manage policy Census on Employment and Wages, Economic to advance retail affordability, diversity, and access. Today the Census, and City land use data to reveal trends responsibility for these issues is spread among multiple agencies. affecting neighborhood retail across the city, and proposes interventions to correct market failures. 2. Empower SBS to file land use applications In general, we have found three fundamental related to retail space and commercial corridors challenges: For storefront retail and commercial corridor issues, SBS should 1. In the neighborhoods with the highest real work with local stakeholders to develop land use policy changes estate values, rising rents and competition with and guide them through the review process, a similar role to chain stores and businesses focused on high- that played by the Department of Housing Preservation and end consumers and tourists are squeezing out Development (HPD) for affordable housing or the NYC Economic longstanding local retailers and restaurants and Development Corporation (EDC) for large-scale redevelopment making it difficult for new small businesses to find projects. space. The tremendous economic success of these parts of the city now threatens to undermine DATA COLLECTION & RESEARCH - the neighborhood character and provision of PAGE 26 goods and services that are essential to livability. 2. Meanwhile, some of New York City’s lower-income 3. Collect and analyze storefront retail data in neighborhoods remain severely under-retailed.