Public-Private Partnerships – Changing New York City's Skyline
PUBLIC PRIVATE PARTNERSHIPS – CHANGING NEW YORK’S SKYLINE New York State Bar Association Real Property Law Section Advanced Real Estate Topics 2016 December 12, 2016 Meredith J. Kane, Esq. Andrea D. Ascher, Esq. Partner Deputy General Counsel, Real Estate Paul, Weiss, Rifkind, Wharton & Metropolitan Transportation Authority Garrison LLP 2 Broadway 1285 Avenue of the Americas New York, New York 10004 New York, New York 10019 1 PUBLIC PRIVATE PARTNERSHIPS – CHANGING NEW YORK’S SKYLINE A public–private partnership (PPP) is a cooperative arrangement among government agencies and private sector partners to undertake a complex large-scale development project, typically with a large infrastructure component. Governments have used such a mix of public and private arrangements in large-scale projects for years. In modern times, almost no private development project is done without public subsidy. Tax and interest rate subsidies, and land use policy, with its implicit subsidies, have played, and continue to play, a critical role in promoting and directing private development in New York City and New York State. For example, consider the roles of: Real Property Tax Incentives – J-51, 421-a, ICAP Multi-Family Housing Incentives: Tax-Exempt Bonds, Inclusionary Housing Zoning Bonuses Zoning Bonuses, Zoning Overrides, Zoning Special Districts (for Affordable Housing, Landmarks Preservation, Creation of Open Space) IDA Benefits for Commercial Tenant Retention and Relocation All of these mechanisms have been used variously in privately-sponsored projects having major public improvements, such as Atlantic Yards, Bank of America Headquarters, Columbia University Expansion and, most recently, One Vanderbilt. Similarly, almost no publicly-sponsored project in New York City is done without private developers – consider, for example, 42nd Street, Battery Park City, Hudson Yards, CornellTech Roosevelt Island, Queens West, World Trade Center, Fulton Center, the Moynihan Farley Post Office Building, Penn Station, and 347 Madison - MTA Headquarters Development.
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