Mixed Signals for NYC Development

Gothamist rounds up interesting movement in some of the big city development projects:

- A City Council committee shot down plans for a BJ's Wholesale Club in the Bronx. The Daily News notes that labor unions were aggressively lobbying against the BJ's, as well as a potential Wal-Mart in Queens (as mentioned in yesterday's NY Times), with one lobbyist saying that this decision mean "The handwriting is on the Wal-Mart." Ha. But there are already BJ's Wholesale Clubs in Brooklyn and Queens.

- A group of Red Hook residents has sued the city, not to mention the City Council, Ikea, and U.S. Dredging Corporation for permitting Ikea to move in. The NY Times reports that the lawsuit's claim is that the development approval was based on "faulty environmental impact statement and was inconsistent with the city's own land-use guidelines." Gothamist predicts this will drag out for a little while, but Ikea will probably becoming.

- And the Independent Budget Office, the nonpartisan watchdog group, says the Jets Stadium on the West Side would be profitable in the next thirty years (here's the IBO's PDF on it). However, the IBO's projected profits are $200 million, versus the City and Jets' estimate of $1 billion. The Mayor is currently saying that the Cablevision bid for the West Side railyards would, ahem, derail the city's efforts to land the 2012 Olympics. Gothamist would like the IBO to projected profits of a West Side plan without the stadium.

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Jen Chung in News on February 11, 2005 10:19 AM

Comments [rss]

Carl

I am not personally against A stadium, just this one. I would be completely happy with one in Queens, built with private funds. They can have their Olympics there too. If anywhere, the outer boroughs could use the development more than Manhattan.

While Robert Moses did have some good ideas, let's not forget the plan for a highway through Soho and the LES that he also thought would be great for the city.

King Hippo

Personally, the main reason why I'm not against the stadium isn't because I want the stadium and the $XX revenue that might be gained. What I do care about is the Olympics and how that might affect new development all over the city, not just on the West Side. Even if you think the two weeks or so in August 2012 will be hell on earth, if they do things right, the projects that the Olympics would bring could be enjoyed by your kids and grandkids. I don't know if us Queens residents would have Flushing Meadows Park if it wasn't for Robert Moses and the World's Fair.

normaldude

- The Independent Budget Office estimated the West Side stadium proposal results in +$7 million/yr net tax revenue (+$52 million/yr tax revenue, -$45 million debt service; net +$7 million/yr x 30 years = $210 million)

http://www.ibo.nyc.ny.us

- The Regional Plan Association estimated that a residential/commercial mixed-use development would create +$510 million/yr net tax revenue.

http://www.rpa.org

So if we go with the Jets proposal, we're essentially giving up half a billion dollars/yr in future tax revenues (+$7 million/yr versus +$510 million/yr).

The railyards is 13 acres of valuable Manhattan real estate. We should NOT be making a $600 million corporate welfare payment to give it away to a for-profit, private sector company (the Jets). We should have NY/NYC commit $350 million to deck over the railyards, and have private sector developers competitvely BID for the right to build over that space.

The government shouldn't have to pay companies just to receive tax revenues. Just look at all the other businesses in NYC. They generate tax revenues & jobs, and they didn't get a corporate welfare payment.

That's the way it's supposed to be. Government collects taxes from people & businesses.. and spends that money on public sector projects like schools, libraries, transportation, police, fire departments.. which creates an inviting environment for more people & businesses to move in, grow, and pay taxes.

Public sector projects are the ones that should be funded by public money. Private sector projects should be funded by private sector money. Public sector projects like schools & libraries might not have high financial return on investments, and that's exactly why they're funded by tax dollars.

I posted my most recent financial analysis here..

http://wirednewyork.com/forum/showpost.php?p=42184&postcount=1073

toyochin

Carl,

Ikea is pretty well known for treating employees well. I'm too lazy to Google articles right now, though if you have the time, I recommend reading this article on Ikea in maisonneuve.

Gringcorp

Yep, that's what we were shouting at Gothamist about. Incorrectly, as it happened.

toyochin

Calming effect? Did you hear what happened at the opening of the newest Ikea store in UK?

Carl

Why does Bloomberg care about the Olympics so much? I personally don't like it when my city is turned into a "security zone." Not to mention all of the tourists.

Ikea meatballs rule BTW.

Which one of the big box stores actually treats their employees well. I remember reading an article about the CEO. Wall street keeps trying to get him to "cut costs," but he stays profitable with a decent wage and get this health benefits.

How does Ikea fair in the wage/benefits department?

Gringcorp

Ooops. Sorry Gothamist. We meant to shout at Gawker.

Gringcorp

Bad Gothamist! We made this point yesterday. If you go to the IKEA website, you can get an animated tour of the store set to Walk Of Life by Dire Straits. Europeans prize this song for its calming properties.