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New York City 2018 Progress Report NEW YORK CITY REGIONAL ECONOMIC DEVELOPMENT COUNCIL MEMBERS

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New York City 2018 Progress Report NEW YORK CITY REGIONAL ECONOMIC DEVELOPMENT COUNCIL MEMBERS State of the Region: New York City 2018 Progress Report NEW YORK CITY REGIONAL ECONOMIC DEVELOPMENT COUNCIL MEMBERS New York City Regional Co-Chairs Winston Fisher Partner, Fisher Brothers Cheryl A. Moore President & COO, New York Genome Center Appointed Members Stuart Appelbaum Douglas C. Steiner President, RWDSU Chairman, Steiner Studios Wellington Chen Marcel Van Ooyen Executive Director, Chinatown Partnership Executive Director, Grow NYC Marlene Cintron Peter Ward President President, New York Hotel and Motel Trades Council Bronx Overall Economic Development Corporation Sheena Wright Cesar J. Claro President & CEO, United Way of New York City President & CEO Kathryn Wylde Staten Island Economic Development Corporation President & CEO, Partnership for New York City Carol Conslato Kinda Younes Co-chair Queens Chamber of Commerce Foundation Executive Director, ITAC Lisa Futterman Regional Director New York City Ex-Officio Members Workforce Development Institute Alicia Glen The Honorable Martin Golden Deputy Mayor of New York City New York State Senate, 22nd District Ruben Diaz, Jr. Gail Grimmett Bronx Borough President President, Protravel International & Tzell Travel Group Eric Adams Steve Hindy Brooklyn Borough President Co-founder and Chairman, Brooklyn Brewery Gale A. Brewer Dr. Marcia V. Keizs Manhattan Borough President President, York College Melinda Katz Kenneth Knuckles Queens Borough President Vice Chair, New York City Planning Commission James Oddo Gary LaBarbera Staten Island Borough President President, Building and Construction Trades Council of Greater New York Nick Lugo President New York City Hispanic Chamber of Commerce Carlo Scissura, Esq. President & CEO, New York Building Congress Table of Contents I. EXECUTIVE SUMMARY ..................................................................................1 II. PROGRESS ..............................................................................................................5 State of the Region ...........................................................................................................7 Key Regional Focus: Life Sciences Cluster ................................................................21 Status of Past Priority Projects ....................................................................................27 Status of All Projects Awarded CFA Funding ........................................................... 41 III. IMPLEMENTATION AGENDA ...................................................................43 Building Momentum in New York City’s Life Sciences Industry ..........................45 Support Collaboration Between Industry & Educators to Develop and Implement Workforce Strategies that Address the Skills Gap .......................49 Update on Existing Regional Priorities ......................................................................52 Opportunity Zone Updates ..........................................................................................54 Additional Ongoing Initiatives ....................................................................................66 Proposed Priority Projects............................................................................................73 IV. WORK GROUPS ..............................................................................................107 V. DOWNTOWN REVITALIZATION INITIATIVE .............................. 111 APPENDIX .................................................................................................................115 Photo credits .................................................................................................................167 This report was printed and produced in New York City on paper made in the state of New York. 2018 Progress Report PART ONE Executive Summary 1 State of the Region: New York City The New York City region has been awarded $465.2 million over seven funding rounds to create and retain over 34,000 jobs and leverage $3.5 billion in private and other public investment. ew York City’s economy continues to grow, main- • Elimination of state and local tax deductibility as a taining its position as the largest and most di- result of federal tax reform will add to the already N verse urban economy in the nation. The city is the high costs of living in the city and make New York economic and talent powerhouse that sustains the nation’s less competitive in attracting jobs and talent. The position of leadership in the global economy. At the same consequences of the major changes in tax law are only time, the city continues to provide a critically important beginning to surface, but there is no doubt that there gateway to economic opportunity for immigrants and will be substantial negative impacts in high tax states. historically impoverished populations. The mission of the New York City Regional Economic Development Council The REDC has developed a strategic plan and priorities (REDC) is to maintain the city’s growth while making its for project selection that focus on delivering resources positive benefits more available to those communities and to communities most in need. It will continue to support households who are most in need. expansion of commercial activity, job creation and afford- able housing development throughout the five boroughs. It The strength of the city’s economy is evident across a wide will prioritize investment in workforce development and variety of measures, with economic output up 34 percent other programs and policies that protect and create new since 2011 and unemployment at a historic low of 4.2 per- opportunities for low income residents. cent. There are fiscal and economic challenges, however, that threaten the continued vitality of the city: Through the REDC and Consolidated Funding Application (CFA) process, the New York City region has been awarded • The region’s public transit system is in a “state of $465.2 million in the first seven funding rounds. Funded emergency,” requiring substantial investment to projects will create and retain over 34,000 jobs and result expand and modernize transportation systems. in more than $3.5 billion in private and other public Investments in infrastructure will take time to pro- investment. In addition, since 2011, the REDC Executive duce results and sources of funding must be identified. Committee has endorsed approximately 187 Empire State Development (ESD) incentive offers for projects with a • The threat of gentrification and displacement of projected value of over $4.8 billion that will create and current residents in developing areas throughout the retain nearly 120,000 jobs. city has generated opposition to growth and demands for deeper public subsidies to protect lower and middle In 2018, the REDC continued to conduct outreach to orga- income residents. This is putting a growing burden on nizations, community leaders and elected officials across city and state government, as the federal government the five boroughs to explain the work of the REDC and the reduces its contributions to housing and community CFA funding process, and encourage a greater diversity of development. applications for state funding. 2018 Progress Report 2 Here are a few examples of what has been accomplished in the eighth year of the Strategic Plan: Launched in October 2017 with federal, state, city and private support, the Veterans Entrepreneurship Training program and the Veterans Future Lab houses workforce development programs as well as business incubation space and prototyping facilities targeting veteran entre- preneurs. The facility, in Sunset Park, Brooklyn, officially opened in November 2017 and the first cohort of 17 program participants graduated in August 2018. The mass transit technology designer and manufacturer Boyce Technologies, Inc. officially opened its new 100,000-square-foot headquarters in February 2018 New York Genome Center with state support. The Long Island City-based company already employs over 100 people with plans to expand at least threefold in the coming years by adding more research and development and product fabrication, among other functions. The Women’s Housing & Economic Development Corporation (WHEDco) received an ESD grant of $2 million for the development of the Bronx Music Hall, a unique performing arts center, bringing an important new amenity to the Bronx. Plans for the building’s interior and exhibits will be complete by fall 2018 with the full project on track to be completed by October 2019. Staten Island’s Empire Outlets is expected to open in the fall of 2018. The project has been supported by the state and includes retail, a hotel, a banquet facility and a sustainable green roof, among other amenities. State Bronx Music Hall funding has played a key role in several major projects that have transformed the St. George area of Staten Island into a new center for tourism and economic activity in the city. As one of the first projects to receive state funding through the REDC, the redevelopment of the former Taystee Bakery Complex in West Harlem is now progressing. With permits approved, demolition of the previously existing structures has been completed and construction is underway. The building will be fully adaptable for life sciences tenants. Johnson & Johnson’s JLABS @ NYC opened a 30,000-square-foot biotech incubator in June 2018 at the New York Genome Center, a recipient of state funding in 2012. The project, partially funded by the state, ex- emplifies the rise in collaboration between government, industry and
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