|Contact:||Sunny Mindel/Michael Anton 212/788-2958
Michael Clendenin (Office of the Speaker) (212) 788-7114
Mayor Rudolph W. Giuliani and City Council Speaker Peter F. Vallone today jointly announced a proposed amendment to the City's pending Commercial Revitalization bill (S.8078/A.11355). The proposed amendment will expand the current proposed benefits from 9 districts to all areas of the City with the exception of the Manhattan central business district. The primary goal of this legislation is to encourage businesses that are considering relocation from Manhattan to relocate to one of the other four boroughs or north of 96th Street.
Mayor Giuliani said, "This program will allow the City to continue the record growth in jobs, retain existing jobs and maintain a competitive edge. The City's booming economy has made vacant office space in Midtown and Downtown Manhattan hard to come by. The proposed expansion of the Commercial Revitalization program is designed to encourage businesses that perhaps can't afford the City's central business district to remain in the City. The program was a great success when we put it into effect in Lower Manhattan four years ago, and we expect similar results when it's put into effect Citywide."
City Council Speaker Peter Vallone said, "There is simply no reason for New York City to lose businesses and jobs to the other side of the Hudson when we have so many attractive and affordable commercial opportunities in areas outside central Manhattan. This program sends a clear message to all business owners that we are determined to provide them with all the tax incentives and relocation assistance they need to grow and prosper right here in the Big Apple."
Among the many benefits the Commercial Revitalization program offers is a $3,000 business tax credit for each employee who is relocated to one of the designated areas. Additionally, there will be special real estate tax incentives that are targeted to spur new construction of commercial office space.
The original Commercial Revitalization plan went into effect in 1996 and covered Downtown Manhattan. Following the success of that plan, Mayor Giuliani announced in his 2000 State of the City address that the City would expand the initiative to three new areas: Downtown Brooklyn, Long Island City in Queens, and the Fordham Road area of the Bronx. This new proposal expands the initiative to all of Brooklyn, Queens, Staten Island, and the Bronx, and to Manhattan north of 96th Street.