SUNSET PARK’S JOBS, WORKING Working group convened by Council Member Carlos Menchaca WATERFRONT, AND INDUSTRY CITY July 31, 2019 AGENDA . Welcome, introductions, goals for today . Sunset Park’s Economy and Employment . Sunset Park’s Working Waterfront . Competing Visions . Industry City’s Vision . Green Jobs . Tools to strengthen industrial districts and workforce 2 REVIEW GOAL FOR THE WORKING GROUP . Advise CM Menchaca on whether or not a rezoning has potential to be a net benefit for Sunset Park . Identify minimum criteria necessary to entertain the rezoning proposal .If yes, identify non-negotiables elements of a plan and tools/strategies . If no, articulate why 3 WORKING GROUP CALENDAR UNDERSTANDING HOUSING AND WORKING BRINGING IT IC’S PROPOSAL DISPLACEMENT WATERFRONT TOGETHER JULY 11 JULY 31 JULY 24 AUGUST 15 Understanding the Discuss data, concerns Discuss data, concerns Further develop tools rezoning proposal and solutions around and solutions around and finalize housing affordability the working recommendations and displacement waterfront and local workforce 4 SUNSET PARK’S ECONOMY AND EMPLOYMENT 5 EDUCATION INDICATORS Education Sunset Park NYC Students performing at grade level in ELA, 4th grade (2018) 50.3% 49.3% Students performing at grade level in math, 4th grade (2018) 52.3% 46.4% White students performing at grade level in math, 4th grade (2017) - 67.4% Hispanic students performing at grade level in math, 4th grade (2017) - 33.6% Asian students performing at grade level in math, 4th grade (2017) - 74.4% Population 25+ with Bachelor’s Degree or higher (2017) 29.3% 37.3% Population 25+ without a HS Diploma (2017) 37.5% 18.1% • Sunset Park students are above average for 4th grade ELA and math performance. • City wide, racial disparities for these indicators are severe. Source: NYU Furman Center 2018 State of New York City’s Housing and Neighborhoods 6 EMPLOYMENT AND BUSINESS INDICATORS Employment and Income Sunset Park BK Unemployment rate (2017) 6.7% 6.4% Poverty rate (2017) 22.1% 19.8% Median household income (2017) $57,870 $58,030 Source: NYU Furman Center 2018 State of New York City’s Housing and Neighborhoods • Levels of median unemployment and poverty are slightly higher in Sunset Park than BK at large, and income is slightly slower • Residents and advocates argue that underemployment is perhaps more pressing than unemployment Housing note Landlords often require a prospective tenant to have 40x monthly rent to qualify for an apartment. Using Sunset Park’s median household as an example: earning $57,870/annually means you qualify for an apartment asking $1,446/month. - Sunset Park March 2019 median asking rent (streeteasy.com): $2,000 7 Number of Businesses in Sunset Park and Windsor Terrace 2010-2016 Retail Trade +151 Accommodation, Food +127 Between 2010 and 2016, most Food Services and Drinking Places +123 Professional, Scientific, Technical +53 number of new businesses in retail, Health Care, Social Assistance food, professional categories Construction Information Legal and Accounting Finance, Insurance Loss of businesses establishments Transportation, Warehousing only in wholesale trade and Architecture and Design Administrative, Waste Management manufacturing sectors Educational Arts, Entertainment, Recreation Real Estate, Rental, Leasing Performing Arts Companies Sunset Park and 2010 2016 % change Retail Banks Windsor Terrace Hotels and Motels Computer Systems Design Total number of 3,349 3,994 +19% Supermarkets 0 businesses Wholesale Trade -7 Manufacturing -25 Source: NYC Neighborhood Economic Profiles, NYC Comptroller. 2018 0 100 200 300 400 500 600 700 800 900 8 2010 2016 Office-oriented and Warehouse-oriented Businesses* in Sunset Park and Windsor Terrace 2010-2016 1,000 929 921 900 800 700 627 600 500 458 400 300 Number of Businesses 200 100 0 Manufacturing; wholesale trade; Finance, insurance; real estate, transportation, warehousing rental, leasing; professional, scientific, technical; information; computer systems design; legal and accounting; * These categories are for architecture and design illustrative purposes only. 2010 2016 Source: NYC Neighborhood Economic Profiles, NYC Comptroller. 2018 9 JOBS PERSPECTIVE FROM THE GROUND OPPORTUNITIES FOR A BETTER TOMORROW CLIENTS FROM SUNSET PARK (FY19) 17-24 year olds who are out of school and out of work • 46.7% reading less than 9th grade level • 70% numeracy skills less than 9th grade level 11 OPPORTUNITIES FOR A BETTER TOMORROW CONCERNS IN MAKING JOB CONNECTIONS 1. What does someone actually need to know and be able to do for higher paying jobs? (Are employers willing to forego advanced degrees if the skills are there?) 2. What investments are needed to create job skills trainings to meet the needs of these industries? Are trainings enough? What else is needed? 3. How do we make sure economic growth improves the lives of SP residents who have low educational attainment, who are underemployed, or working a low wage job? (Knowing that the strategies for these are varied) 12 SUNSET PARK* INNOVATION LAB USERS AND JOB CONNECTIONS MAY 2018-MAY 2019 Job connection with some high school (12.5%) Job connection with high school diplomas (61.8%) Job connections with some college (23.6%) Security guard - $16.hr (not IC) Ramp Agent - $15/hr • Marketing/Communications - $19-$23/hr (not IC) Hospital maintenance - $17/hr $15/hr • E-commerce studio assistant - $17/hr • Dispatcher - $15.61/hr (not IC) Shade assembler - $15/hr (not IC) Housing officer at Food First -$15/hr • Graphic designer - $40k to 45k /annual Warehouse assistant - $15/hr Assembler - $15/hr • Production/Event assistant - $25/hr Deckhand - $15/hr (not IC) Call Center customer service - $15/hr • Property manager - $15-$18/hr Production associate - $13.50/hr (not IC) Longshore worker - $20/hr+ • Receptionist - $18/hr • (not IC) Shade Assembler -- $15/hr Prep Cook - $13.50/hr (not IC) (non CDL) - $15/hr • (not IC) Machine operator - $16.50/hr Catering - $16/hr and up (not IC) Shade Assembler - $15/hr Security guard - $16/hr Event Coordinator - $25/hr Dispatcher - $15.61/hr (not IC) Medical Assistant - $16 to $20/hr Resident Manager - $20-$30/hr Welder - $18-$27/hr Office Assistant - $15-16/hr *Zip codes 11220 and 11232 (not IC) Mailroom Clerk - $15/hr 13 SUNSET PARK 5TH AVE COMMERCIAL CORRIDOR BUSINESS IMPROVEMENT DISTRICT OBSERVATIONS • Typically small storefronts, neighborhood customer focus • Building ownership not dominated by large corporations • Vacancies not driven exclusively by rent increases • Asking prices for retail leases increasing • Blend of "Mom & Pop" and national retail 5th Avenue and 52nd Street, Sunset Park brands 14 SUNSET PARK 5TH AVE COMMERCIAL CORRIDOR BUSINESS IMPROVEMENT DISTRICT OBSERVATIONS • New trends • Upper floor residential conversions • New charter schools • Upscale food/drink establishments • Challenges • Infrastructure, transportation, sanitation, street vending • Language and cultural gaps between merchants and City • IC tenants, workers and customers isolated from neighborhood commercial 5th Avenue and 52nd Street, Sunset Park strips. 15 SUNSET PARK’S WORKING WATERFRONT 16 THE WATERFRONT IS PRIMARILY A JOBS CENTER Sunset Park Land Use (2019) Industrial & Manufacturing Transportation & Utility Commercial & Office Buildings Industrial Business Zone (IBZ) Source: NYC Department of City Planning Zoning and Land Use Map. zola.planning.nyc.gov 17 INDUSTRIAL JOBS CONCENTRATE IN IBZS 18 WHAT ARE GROWTH INDUSTRIES IN IBZS? WHAT ARE DECLINING INDUSTRIES? SOUTHWEST BROOKLYN INDUSTRIAL DEVELOPMENT CORPORATION (SBIDC) OBSERVATIONS Citywide Context Healthy local economy and population gains in New York City The growing industrial sectors are tied to the local economy and not to national or global markets. (IBZs do well when city does well – b/c it supports 19 WHAT ARE GROWTH INDUSTRIES IN IBZS? WHAT ARE DECLINING INDUSTRIES? SOUTHWEST BROOKLYN INDUSTRIAL DEVELOPMENT CORPORATION (SBIDC) OBSERVATIONS Brooklyn: Manufacturing sector has significantly outperformed the city as a whole since the Great Recession, mostly from companies at the intersection of manufacturing, technology and design. Manufacturing jobs citywide declined by 7 percent citywide, but were up by 1 percent in Brooklyn. The borough has experienced net job gains in several manufacturing subsectors (connected to tech or design), including (New York State Department of Labor, QCEW, Q3 2018 and Q3 2011. electrical equipment and appliances manufacturing (which had a net increase of 347 jobs since 2011), jewelry and silverware manufacturing (+218 jobs), ornamental and architectural metal products manufacturing (+110 jobs), furniture and related products manufacturing (+82 jobs), medical equipment and supplies manufacturing (+81 jobs), and machinery manufacturing (+21 jobs). 20 WHAT ARE GROWTH AND DECLINING INDUSTRIES IN IBZS? SOUTHWEST BROOKLYN INDUSTRIAL DEVELOPMENT CORPORATION (SBIDC) OBSERVATIONS IBZs Citywide: The largest sectors in IBZs are all industrial. In M districts beyond IBZs, industrial sectors are somewhat smaller and just over half of the employees worked in Retail Trade, Health Care & Social Assistance (both non-industrial) Construction and Transportation. Southwest (SW) IBZ: 2000-17 Overall Trend: industrial firms and jobs have remained level/slightly grown, while non-industrial have gained, and accounted for most of job growth Appx number of (total) businesses in the SW IBZ: 1,700 Appx number of (total) workers in the SW IBZ: 27,750 Appx number of Industrial