The push by actual property dealmakers for Albany to resume a controversial tax-credit vital to saving Downtown Manhattan became an actual “cliffhanger” – however seems poised for approval, The Submit has discovered.
The citywide Relocation Employment Help Program and an identical one particularly for Decrease Manhattan, generally known as LM-REAP, present tax credit of as much as $3,000 per worker to firms that relocate from out of the town or from components of Manhattan to designated areas within the outer boroughs or to Downtown Manhattan.
Tens of 1000’s of jobs and the way forward for scores of Decrease Manhattan workplace buildings could be in danger if the little-known REAP packages weren’t renewed once they expire on June 30, in accordance with landlords and enterprise advocates.
The measures had been ignored of the state’s funds plan introduced in April and appeared doomed as lawmakers within the state Senate and Meeting had been set to flee for his or her summer season break.
However there was motion on an extension over the weekend, a educated Albany supply advised The Submit on Monday.
“It finally got key approvals in the Assembly, and it’s looking good tomorrow in the Senate, which was where the hangup was,” the supply stated.
Michael Gianaris, the State Senate Deputy Majority Chief from Queens, amongst others, had argued that REAP value the town an excessive amount of in foregone taxes — as much as $33 million by 2033, in accordance with the Division of Finance — to justify the financial advantages the extra jobs would convey.
However renewing this system “is critical to COVID recovery, preserving affordable office space and promoting job growth in small and medium-size businesses,” argued a rep for the Alliance for Downtown.
Supporters say LM-REAP prices the town a negligible $5 million a yr — a pittance weighed in opposition to the tax advantages it helps generate in property and incomes taxes, though these figures are tougher to quantify.
REAP started in 1987 to stem an exodus of tenants to New Jersey. The Decrease Manhattan plan, launched in 2003, is credited with supporting 16,000 metropolis jobs and serving to to lease a whole bunch of 1000’s of sq. toes of workplace area in a market that’s had extra downs than ups since 9/11.
One supply predicted a contemporary wave of flight to New Jersey if REAP is allowed to die.
“They’re actively recruiting New York businesses with programs offering up to $8,000 per job and $250,000 relocation grants. It’s clear that if New York steps back, New Jersey will step in,” the supply stated.
The REAP renewals, in addition to creation of a brand new program known as the Relocation Help Credit score for Workers (RACE), are backed by Gov. Kathy Hochul.
However fearing that the measures could be allowed to die, native congressional representatives threw their voices into the fray.
Gregory Meeks, Grace Meng, Ritchie Torres, Thomas Suozzi and Adriano Espaillat wrote to State Senate Majority Chief Andrea Stweart-Cousins and Meeting Speaker Carl Heastie that with “record high office vacancies downtown, “Now is not the time to end LM-REAP.”
The REAP packages have additionally introduced jobs to Dumbo, MetroTech and the Navy Yard in Brooklyn and to Lengthy Island Metropolis in Queens.
However the warmth’s totally on Decrease Manhattan, the place greater than 20% of almost 90 million sq. toes of workplaces within the nation’s second-largest industrial district stand vacant — and it would worsen.
“I believe the numbers being cited for current and future vacancies are too low, especially on Water Street,” stated one Downtown govt who requested for anonymity advised The Submit. “The REAP program is essential to keeping downtown competitive.”
