| FOR IMMEDIATE RELEASE Date: Thursday, July 12, 2001 |
Release #246-01 |
| Contact: | Sunny Mindel / Sid Dinsay | (212) 788-2958 |
Remarks by Mayor Giuliani at Public Hearing on Local Laws
The next bill before me is Introductory Number 862, sponsored by Council
Member O'Donovan at my request. This legislation will make a number of enhancements
to the City's Industrial and Commercial Incentive Program.
The Industrial and Commercial Incentive Program provides real property tax
exemptions and abatements to eligible commercial properties throughout the
City that are modernized, rehabilitated or newly constructed. The Program's
benefits help the City to retain manufacturing jobs and hold down tax increases
on industrial businesses that expand or renovate their buildings.
This bill will make it possible for many more commercial properties around the City to qualify for the Program's tax benefits by removing the so-called "past use requirement." The past use requirement renders a property ineligible for the Program's commercial construction or renovation benefits if more than 15% of its space had been used for manufacturing within two years of applying for benefits. Under this bill, this requirement will be eliminated, enabling many more properties to take advantage of the Program.
Additionally, the legislation will substantially increase the availability of the tax abatement for manufacturers. Presently, the Program's real property tax abatement for manufactures is available only in buildings that use at least 75% of their space for manufacturing activity. With this bill, properties with between 25% and 75% of their floor space dedicated to manufacturing would also be able to qualify for a pro-rated tax abatement. The greater the percentage of space used for manufacturing, the greater the amount of the tax abatement.
The enhancements to the Industrial and Commercial Incentive Program provided by this bill will help ensure that the City remains an economically attractive place for manufacturing and industrial companies. By allowing more businesses to reap the Program's benefits, we will help sustain the record job growth and economic expansion of the last seven years.
For the reasons previously
stated, I will now sign the bill.
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