
A bill recently introduced in the City Council grew out of the controversy created by mega-developments such as Yankee Stadium, Ground Zero, Atlantic Yards, Coney Island and Willets Point.
City CouncilIntro No. 801 of 2008, entitled "Community Impact Reports", would require that developers who receive public subsidies address the public impact of their projects.
The bill, aimed at developers seeking direct subsidies, low-interest financing, tax benefits, tax-exempt financing, and tax-exempt bonds and grants, promises to provide a stronger public review and approval process.
The bill would require that each developer report to the City Council on the intended social and economic impact of the project on surrounding communities. (City contractors exclusively providing social services or affordable housing would be exempt from the requirement.)
“We need to have a way to monitor the benefits that are given to developers,” said Councilman Thomas White Jr., a Queens Democrat who chairs Council's Economic Development Committee.
In fiscal year 2006, the New York City Industrial Development Agency alone granted at least $700 million in tax breaks to developers.
Councilman Albert Vann, with Councilmembers White, Bill de Blasio, Tish James and others, created the
bill to "help us to understand how city funds are being used in communities..." said Vann’s legislative director, Dottie Conway.
Introduced June 29, the bill has not yet been calendared for a hearing.
To increase transparency, the bill would require that reports be submitted to the Council 60 days before any city agency or authority approved any public subsidy. The information gathered would be available to potentially-affected communities so that they -- and their councilmembers -- would have time to react.
“The reports disclose information that can be used by communities and legislators to leverage outcomes, which will strengthen communities by way of affordable housing, improving neighborhood services, and creating jobs," Conway said.
The legislation originated around the time that the mayor's Five Borough Economic Development Plan was released, as part of a strategy to articulate economic development and poverty issues.
The required reports would contain an exhaustive level of detail about the social and economic effects of development within a given neighborhood.
The bill also addresses displacement of residents and businesses, a common concern of those living in areas facing re-development.
Tom Angotti, director of the Center for Community Planning and Development at Hunter, says that the bill fails to distinguish between direct and indirect displacement -- between the people who lose their apartments and businesses that are forced to relocate by the development itself, and the people and businesses eventually forced out as a result of rising rents and prices.
Says Angotti, “...They need to look at the fine points, the details of projects, not just fill in tables and numbers.”
Angotti praises the goal of Intro 801, but says the bill isn't the best path to that goal. “...I think the best way to increase transparency and accountability is by changing the way that the city does development, engaging community planning and consultation.”
Hope Cohen, deputy director of the Center for Rethinking Development at the Manhattan Institute, also wants more detailed wording and is not sure the legislation will be effective. “...[M]ost economic development projects are going to have mostly state funding, which City Council won’t have any jurisdiction over,” Cohen said.
That depends on the project, according to Bettina Damiani, project director for Good Jobs New York, a group that focuses on public subsidies and that welcomes increased accountability for developers. “I am excited by...any effort to...put together the impacts of economic development...Right now it is...in silos, with ULURP working over here, and MOUs [memoranda of understanding]...over there,” Damiani said.
Good Jobs New York has just released a new web
utility to view the location in each community district of companies receiving subsidies.
The city's Uniform Land Use Review Procedure (ULURP), and SEQRA, the State Environment Quality Review (or CEQR, the city’s process for implementing SEQRA), are the primary interface between communities and developers. CEQR reviews social and economic impacts, but only to assess whether or not an environmental impact study is necessary.
Intro 801 is, according to its sponsors, distinct from these other methods in the level of detail it requires and its focus on local social and economic issues.
Michael Slattery, a senior VP at the New York Real Estate Board, thinks Community Impact Reports would be unnecessary, saying "...I think this is one more way to make it more difficult for projects that [provide community] assistance to receive it."
The article on City Limits:
http://www.citylimits.org/content/articles/viewarticle.cfm?article_id=3589&content_type=1&media_type=3