NYC Strategy for Economic Development

Transcription

1 NYC Strategy for Economic Development Robert Walsh January 28, 2014

2 NYC Economy Snapshot NYC s economy has outperformed the rest of the country since the onset of the financial crisis The NYC metro area is a $1.28T economy, which would rank just behind Spain as the 13 th largest economy in the world 3.33m private sector jobs an all-time high Four sectors with a record number of more than 300,000 jobs From , New York added as many private sector jobs as the next ten largest cities combined In the third term, NYC has achieved a historic record of accomplishments: Record population (8.3m) Record jobs (3.3m) Record housing units (3.4m) Record tourist visitors (52.5m)

3 Mayor Bloomberg s Record Emerging Sectors: invested in emerging sectors like technology and the life sciences by building incubators and attracting world-class universities Development: opened our waterfront and rezoned old industrial parts of the city to allow for further investment in our neighborhoods Housing: led the nation s most aggressive affordable housing program and has built or preserved more than 160,000 units

4 Mayor Bloomberg s Record Education: took control of the City s schools resulting in higher test scores, lower dropout rates and better teachers Infrastructure: invested in the city s infrastructure, building subways and tunnels, he has made our air cleaner and banned smoking in public places Streetscape: created hundreds of new acres of parks, built a network of pedestrian plazas and miles of bike lanes

5 Economic Development Overview Four key pillars of Mayor Bloomberg s economic development strategy Improving Quality of Life Creating a Pro-Business Environment Innovation and Economic Transformation Investing in the Future

6 Economic Development Overview Four key pillars of Mayor Bloomberg s economic development strategy Improving Quality of Life Creating a Pro-Business Environment Innovation and Economic Transformation Investing in the Future

7 Quality of Life People have a choice of where to live Clean Air and Water Parks and Recreation Public Safety Quality of Life Cultural Institutions Schools Clean Streets

8 New York City Waterfront The 6 th Borough : 500+ miles of waterfront Housing Hunter s Point South Home Port Williamsburg Recreation Governors Island Hudson River Park Brooklyn Bridge Park Hunts Point Landing Transportation New ferry service

9 The High Line In 2012, the High Line had than 4.4 million visitors

10 Economic Development Overview Four key pillars of Mayor Bloomberg s economic development strategy Improving Quality of Life Creating a Pro-Business Environment Innovation and Economic Transformation Investing in the Future

11 Creating a Pro-Business Environment Helping businesses open, expand and thrive Balanced Regulation Business Customer Service Pro-Business Environment Supporting Small Businesses Low Taxes, Controlling Spending

12 Creating an Agency to Serve Small Businesses As a former small businessman himself, Mayor Michael Bloomberg has emphasized the role that small businesses play in shaping New York City s economy. Entrepreneurs are trying to create jobs and business as usual from government is just not acceptable. - Mayor Michael Bloomberg January 20, 2010

13 Creating an Agency to Serve Small Businesses In July 2003, Mayor Bloomberg eliminated the Department of Employment and consolidated the City s adult workforce programs with the Department of Small Business Services to link economic development initiatives to workforce development. Department of Employment Provides access to employment and training resources to help jobseekers in NYC The Department of Small Business Services Supports economic growth in NYC by directly supporting businesses, strengthening the NYC workforce to meet businesses needs, and by connecting businesses to jobseekers Small Business Services Supports the formation and growth of small business by providing business assistance, fostering neighborhood development, and promoting economic opportunity

14 Who We Serve Serving Businesses SBS serves businesses by: providing direct assistance to help businesses start, operate, and expand; and simplifying the way businesses can manage licenses, permits, and other transactions with the City. Serving Neighborhoods SBS supports community-based economic development organizations throughout the City in order to create the conditions under which local businesses can grow and thrive. Serving Jobseekers SBS implements a business-driven system of workforce development focused on matching worker training and skills development with employer needs.

15 Business Development: NYC Business Solutions The Mayor asked SBS to develop a blueprint for how to serve small businesses. SBS started by asking businesses what they need and developed a system to assist them. To start and grow in New York City, businesses responded that they needed help with: Accessing capital to start and expand Finding qualified workers Navigating government regulations SBS built NYC Business Solutions, around the actual needs of businesses to help them start, operate and expand Established seven NYC Business Solutions Centers in all five boroughs Created eight centers to serve industrial and manufacturing businesses NYC Business Solutions Centers Industrial Business Zones

16 Business Development: NYC Business Solutions The NYC Business Solutions Centers provide businesses with a suite of nine services that are directly related to their needs. Businesses can access a wide range of services through NYC Business Solutions; centers are a one-stop shop to connect businesses to the City s programs Business Courses Legal Assistance Financing Incentives Navigating Government Recruiting Employees Training Selling to Government Minority- and Women-owned Business Enterprise (M/WBE) Certification Princess Jenkins, owner of Brownstone in Harlem, used NYC Business Solutions to help her identify a lender and finalize her application which resulted in a $90,000 loan.

17 Business Development: NYC Business Solutions In 2012, NYC Business Solutions: Assisted 10,300 customers with 15,300 services Connected our customers to more than 670 financing awards, helping them to access more than $63 million Provided more than 4,400 entrepreneurs and business owners with free business courses like Business Financial Management and Mastering Marketing Saved over 710 customers on legal fees Helped over 250 businesses launch, creating new jobs in the economy Launched the Small Business Digital Toolkit, which helps small businesses in New York City use digital technologies to grow and create jobs Monika Nyzio, a footwear designer in Brooklyn, received $85,000 from the New York Business Development Corporation through NYC Business Solutions; she was able to increase production and sales.

18 Business Development: Expanding Access to Capital In January 2011, SBS launched the NYC Bank Advisory Council with Deputy Mayor Steel to work with 10 banks to address challenges in small business lending. SBS works with the Bank Advisory Council to: Financing by Institution Type Financing by Institution Type Educate Business Solutions staff on bank products to better assist small businesses Refer customers to SBS for loan packaging and connections to alternative lenders Credit Union 14% Bank 35% Alternative Lender 51% Innovate to design creative solutions for providing credit to hard-to-serve businesses NYC Business Solutions has connected businesses to $200 million since 2007 Total Dollars in Financing

19 Business Development: Capacity Building SBS developed intensive programs to address the needs of entrepreneurs and small businesses, helping them to develop strategies to grow. FastTrac GrowthVenture and FastTrac NewVenture Four-week program designed to assist entrepreneurs and operating businesses in partnership with SUNY Levin and the Kauffman Foundation More than 2,500 graduates since 2009

20 NYC New Business Acceleration Team In January 2010 Mayor Bloomberg launched the NYC New Business Acceleration Team (NBAT), a pilot program to help eating and drinking establishments open faster. NBAT works to help businesses open faster by reducing the time and effort needed in order to meet basic City requirements NBAT helps with inspections by the Fire Department, Department of Buildings, Department of Environmental Protection among others NBAT has helped more than 1,600 food establishments open up more than two months more quickly Streamlining a business relationship with the City saves time and money, and creates new jobs more than 22,000 since 2009, across all boroughs

21 Economic Development Overview Four key pillars of Mayor Bloomberg s economic development strategy Improving Quality of Life Creating a Pro-Business Environment Innovation and Economic Transformation Investing in the Future

22 Investing in the Future When you stop investing in the future, the future hits the road. Michael R. Bloomberg Transportation / Critical Infrastructure #7 Extension to 34th/11 th anticipated to open June 2014 Comprehensive Waterfront Revitalization Plan Bridge and Roads State of Good Repair 3rd Water Tunnel and Upstate Watershed East River Ferry Bike Share - five million trips in the first five months Affordable and Public Housing New Housing Marketplace Plan 165K units of affordable housing Commercial Office Space Major projects in Manhattan: Lower Manhattan, Hudson Yards, East Midtown Development of other Central Business Districts: Downtown Brooklyn, Stapleton, Long Island City, Jamaica, Willets Point

23 St. George Waterfront The New York Wheel will be the world s largest Ferris Wheel and a global tourism magnet

24 Domino Sugar Factory 3.3 million square feet of mixed use development will be built on Williamsburg waterfront

25 Seward Park/Essex Crossing The transformation of Seward Park will include permanent affordable housing and a business incubator

26 Kingsbridge Armory Kingsbridge Armory will be recreated into the world s largest indoor ice facility

27 Economic Development Overview Four key pillars of Mayor Bloomberg s economic development strategy Improving Quality of Life Creating a Pro-Business Environment Innovation and Economic Transformation Investing in the Future

28 Emerging Strength in Tech Under Mayor Bloomberg s leadership, NYC has emerged as a hub of start-up activity Mayor Bloomberg is himself the Start-Up Mayor NYC recently passed Boston to become the 2 nd largest recipient of Technology VC investment in the country Home-grown success stories: Foursquare, Tumblr, SecondMarket, Etsy, ZocDoc Recent Start-Up Immigrants : Google, Facebook, Twitter 30%+ growth in employment in high-tech jobs in NYC since 2005

29 Small Business Incubators From 2008 to 2012 New York City went from having no incubators or co-working spaces to having nearly 20 co-working spaces and incubators, several of which were financed by the New York City Economic Development Corporation. Incubators provided flexible working space for fledgling start-ups, promoted a collaborative exchange of ideas and spurred entrepreneurial activity.

30 Life Science Initiatives In 2012 NYC had the largest bioscience workforce in the country, with 427,300 jobs in its scientific and healthcare workforce and 120 existing bioscience companies. New York City also has the world s largest concentration of life science academic institutions with nine major medical centers, including Columbia University, Weill Cornell Medical College, NYU, Albert Einstein College of Medicine, as well as 57 hospitals including Sloan-Kettering Cancer Center, and New York-Presbyterian Hospital, and was recipient of the second most National Institutes of Health in research awards.

31 Alexandria Center The City donated land to construct over 1 million square feet of commercial laboratory space in the Alexandria Center for Life Science, the first part of which opened in The Center is home to pharmaceutical, bioscience, technology, and medical device firms, and was designed to foster cross-institutional collaboration.

32 NYC LA Chicago San Diego Phila. Houston Boston San. Antonio Austin Phoenix NYC is America s College Town NYC benefits from its array of community colleges, commuter schools and selective universities NYC has more post-secondary students than Boston has people 664 Post Secondary Students (in thousands) Source: U.S. Census Bureau, American Community Survey

33 Applied Science Initiative In December of 2010, the City launched Applied Sciences NYC, a competition open to national and international universities to design a new tech campus in New York City. As incentives, the city offered its land and seed investment capital. The city received 7 applications from 17 universities, ultimately choosing a proposal from Cornell University and Technion-Israel Institute of Technology for an applied science and engineering campus on Roosevelt Island to be completed in $2 billion investment to leverage $100 million City contribution 2 million square feet of new buildings 2,000 students and several hundred faculty at full build Partner with DOE to work with 10,000 students and 250 teachers $150 million fund to support NYC-based start-ups

34 Roosevelt Island Site Today

35 Cornell and Technion s Vision

36 Columbia University In July 2012, Columbia University announced an agreement with the City that would lead to an Institute for Data Sciences and Engineering in Morningside and Washington Heights, for which the City promised $15 million in financial assistance. The focus of the new institute will be on advances in the data sciences, attracting high-caliber faculty in specific fields of study, and expanding Columbia s research capabilities and funding, and building upon the school s recent successes in engineering. In addition, the institute will enhance the level of training available to the city s next wave of talented engineers and generate nearly $4 billion of economic growth across the five boroughs over the next three decades.

37 New York University In April 2012, New York University announced it would open the Center for Urban Science and Progress, in a Metropolitan Transportation Authority building in Downtown Brooklyn. The Center for Urban Science and Progress (CUSP) will be a partnership of top institutions from around the globe, led by NYU and NYU-Poly, which will focus on research and development of technology to address the critical challenges facing cities, including infrastructure, tech integration, energy efficiency, transportation congestion, public safety, and public health. Led by NYU, CUSP includes CUNY, Carnegie Mellon, Univ. of Toronto, University of Warwick, and IIT Bombay

38 Center for Urban Science and Progress The Center for Urban Science and Progress (CUSP) in Downtown Brooklyn Metropolitan Transportation Authority building in Downtown Brooklyn

39 Downtown Brooklyn Since 2002, Mayor Bloomberg has been committed to creating a diverse economy, focusing on the development of high-growth sectors throughout the five boroughs. The City has attracted high-growth sectors to neighborhoods by investing in transportation, housing, and commercial corridors Media and entertainment companies have grown, contributing more than $400 million in tax revenue to NYC New York is second only to San Francisco in attracting venture capital for tech companies Example: Downtown Brooklyn Since 2000, Downtown Brooklyn has added more than 9,000 new jobs and 500 businesses Tech jobs will grow from 8,000 to 16,000 by 2016 as firms like Etsy, based in DUMBO, continue to grow

40 Brooklyn Tech Triangle Three local BIDs, the Brooklyn Navy Yard Development Corporation, Downtown Brooklyn Partnership, and the DUMBO Improvement District, and the City invested in streetscape improvements, marketing and increased security in Downtown Brooklyn, bolstering local retail market, which was getting $90/sqft rent in These three BIDs established the Brooklyn Tech Triangle the district in which Brooklyn s promising creative and technology industries were most densely located. In 2012, 523 creative and technology firms were housed in the Tech Triangle.

41 Brooklyn Tech Triangle 1.7 million square feet of workspace More than 9,600 employees More than $3 billion in economic output A keystone of the Tech Triangle, MetroTech in Downtown Brooklyn, was the nation's largest urban university-industry science and technology park and lured JP Morgan Chase away from partial relocation to New Jersey.

42 Economic Impact A Game-Changer The impact of the Cornell-Technion, NYU and Columbia projects will transform NYC s economy Building the Campus Operating the Campus Commercializing the Campus Research 22,000+ jobs ~9,000 jobs (1/3 of NYC university jobs held by people with less than BA) Tens to hundreds of thousands of jobs; 800+ new companies >$32 billion of Total Economic Activity (over 30 years) Source: New York City Economic Development Corporation

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