NYCEDC 2011 Year End Report

Building a Sustainable Economic FutureNYCEDC ANNUAL REVIEW 2011

City Hall Park

A Message from MAYOR MICHAEL R. BLOOMBERG

Even after the economic challenges of the past couple of years, New York City remains a thriving business center and a magnet for entrepreneurs and talent from all over the globe. To help our businesses from Fortune 500 companies to start-upssucceed, we have launched dozens of new projects and initiatives over the past year. These efforts are aimed at diversifying and supporting the Citys economy in a wide range of sectors, from fashion and the arts to bioscience and technology, from the smallest mom and pop shops to multi-national corporations. Alongside these efforts, we are also working to foster the creation of new companies throughout the City to secure New Yorks place as a leader in the economy of tomorrow. Towards these ambitious ends, over the past year, we have launched a global challenge to create a new world-class applied sciences and engineering facility in New York City. We have also supported hundreds of entrepreneurs through the creation of affordable work-space. We have assisted local food manufacturers to expand the reach of their businesses. And that is just the start. As we work to support our Citys businesses, we are also striving to make New York City a place where people want to live and work. From expanded public open space in the Bronx to a new amusement park at Coney Island to a more accessible waterfront throughout the five boroughs, we have spent the past year as we have spent every year since 2002 making the City a more attractive home for individuals and businesses alike. NYCEDC has been a leader in these important endeavors and I am confident that with their efforts, we will secure New York Citys place as the capital for business and innovation during the 21st century. Sincerely,

Presidents Introduction SETH PINSKY

we are, in the short to medium-term, living in an economic environment, both nationally and globally, where nothing can be taken for granted. We also know that, with the world changing around us rapidly, over the long-term, we are in no position to rest upon our laurels. For, in this day and age, we are not just competing with cities in America or even global capitals in the developed world. Rather, today, we are in a competition that is truly worldwide, with challengers in multiple countries and on virtually every continent. To ensure that we succeed in this increasingly competitive environment, we in the Bloomberg Administration have continued to reinvent the way economic development is done, setting for ourselves the ambitious goal of transforming our city into nothing less than the global capital of innovation for the 21st Century. This bold ambition, which comes directly from Mayor Bloomberg and Robert Steel, Deputy Mayor for Economic Development, touches every aspect of what we do from the way in which we are assisting our Citys business community to the investments that we are making in our Citys physical plant. To meet our goals, we have continued to work over the past year to help our Citys traditional industries to adapt 20th Century business models to new 21st Century realities. Simultaneously, we have worked to attract or expand industries in which we have many of the essential building blocks, but in which we have historically lagged. And, to ensure that we secure our place in the industries of tomorrow regardless of whether they are on or over the horizon, we have worked to put the tools for identifying the next big thing into the hands of our smart and talented workforce, promoting entrepreneurship, regardless of sector. In fact, since 2008 alone, weve launched nearly 100 initiatives aimed at growing our entrepreneurial sector, ranging from apps competitions to an ambitious network of business incubators to classes to foster entrepreneurial skills.

Looking back on the past year, despite our national economic challenges, the economy here in New York has continued to outperform that of the rest of the United States. This is because our Citys economy is blessed with a number of competitive advantages. New York City remains, for example, a global leader in a vast range of sectors, from media and the arts, to finance and business services; from health care to technology. Today, we serve as the headquarters to more Fortune 500 companies than any other city in America, and, unlike many other large cities in the region, not only is our population still growing, but we are continuing to attract record-breaking numbers of visitors. The City also boasts an incredible array of cultural institutions, restaurants and attractions. It contains an outstanding transportation system, beautiful parkland, and unmatched diversity. As a result, it remains the destination of choice for many of the best and the brightest from around the world. As important as these strengths are, though, we at the New York City Economic Development Corporation know that

West Harlem Piers

Another way in which we are preparing for the city of tomorrow is by focusing on investments in our Citys physical infrastructure. Our investments include basic infrastructure like a new water siphon between Staten Island and Brooklyn that will allow us to lower the shipping channel into New York Harbor to accommodate the largest modern cargo vessels. Our investments also include amenities like Heritage Field in the Bronx which will provide world-class recreational facilities to the local community. In some cases, our investments are even aimed at creating whole new neighborhoods, such as Hunters Point South in Queens, which is being developed in conjunction with our partner agencies in City government to provide thousands of new units of affordable housing to middle-income New Yorkers.

To achieve our far-reaching vision for the five boroughs, NYCEDCs nearly 400 employees have been working tirelessly over this past year, accomplishing amazing things on behalf of the people of the City. For this reason, even with national and international challenges, we remain confident that our city will emerge in the coming century stronger and more vibrant than ever before. The road ahead may not always be straight or easy, but if we New Yorkers continue to work together and invest in our future, we know that our future will be bright.

Homeport at Stapleton

Table of Contents

Building Sustainable Jobs and Industries ................................................................................................................................6Assisting Legacy Industries ........................................................................................................................................................................8 Emerging Industries ................................................................................................................................................................................13 Entrepreneurship ....................................................................................................................................................................................18 Connecting Academia to the Economy ..................................................................................................................................................25

Building a Sustainable Infrastructure ......................................................................................................................................26Waterfront and Open Space ..................................................................................................................................................................28 Mixed-Use Space ....................................................................................................................................................................................32 Area-Wide Development ........................................................................................................................................................................33 Neighborhood Developments and Amenities ..........................................................................................................................................40 Transportation ........................................................................................................................................................................................44

Appendix ..........................................................................................................................................................................................46Board of Directors ..................................................................................................................................................................................49 Financial Statements ..............................................................................................................................................................................50

NYCEDC Accomplishments 2002-2011 ....................................................................................................................................54

Historically, New York City has been a leader in the global economy. However, as technology has lowered barriers to entry across industries in which New York has traditionally prospered and has transformed the competitive landscape worldwide, New York Citys special place in the global economy has been challenged in ways that New York has not experienced in decades or perhaps ever in its history. At NYCEDC, we know that, to address these challenges and remain competitive, we must not shrink from change, but rather must embrace it. To this end, we are working with our partners in academia, in the private sector and at all levels of government to help

Building Sustainable Jobs and Industries

transform our economy into a model for the 21st Century, with the goal of securing a leadership position in a diverse range of industries. We believe that the key to our transformation is innovation innovation by our largest Fortune 500 companies, innovation by our myriad of technology start-ups, and innovation by our mom and pop businesses and sole proprietorships. So, how is NYCEDC achieving these goals? Our strategy is three-fold. First, we are working to help New York Citys so-called legacy industries (i.e., industries in which we have traditionally excelled), such as fashion, finance, media, arts, and manufacturing, transition from 20th Century business models to 21st Century business models. Second, we are simultaneously working to attract and build new, growth industries in which we have competitive advantages. Third, we are promoting entrepreneurship across all sectors, with the goal of empowering our greatest resource our incredible workforce to secure a place for our city in the industries of tomorrow, including many that may not even exist today. This program of diversification a watchword of economic development throughout Mayor Bloombergs term in office will help to insulate the Citys economy from the sharp spikes and dips of the economic cycle and to ensure that, going forward, we remain the global magnet of talent and new ideas that we have been for the four centuries since the Citys founding.


ASSISTING LEGACY INDUSTRIESINDUSTRIALGrowing Industrial Businesses in New York CityIn June 2011, NYCEDC announced a suite of twenty-two initiatives aimed at revitalizing the Citys industrial sector, which is a critical source of high-paying jobs, and is responsible for more than 16% of the Citys total private sector employment. These initiatives, which emerged from an extensive interagency effort led by Deputy Mayor Robert Steel, aim to stabilize and expand this sector by increasing access to modern space, strengthening Industrial Business Zones, and increasing access to financing resources. Included among these initiatives is the $10 million Goldman Food Fund, which NYCEDC developed with Goldman Sachs 10,000 Small Businesses Initiative with the goal of providing bridge financing to food entrepreneurs. These initiatives also include an $8 million fund created with the New York City Council for the reactivation, renovation, and right-sizing of privately-held, vacant industrial space. All told, NYCEDCs industrial initiatives represent an investment of over $100 million in value by the City in the industrial sector and are projected to revitalize, modernize, and preserve up to nine million-square-feet of space, creating and retaining up to 30,000 direct and indirect industrial jobs. Also in Hunts Point, the City released a Request for Proposals for industrial and food-related development on the so-called Halleck Industrial Development Site, a 400,000-square-foot development site ideal for a new food-related production or distribution facility.

Re-activating the Federal BuildingIn May 2011, NYCEDC and Salmar Properties reached an agreement to reactivate a 1.1 million-square-foot vacant warehouse in Sunset Park, Brooklyn, transforming it into a new home for industrial and light-manufacturing users. When completed, the project will result in the complete renovation of this historic facility and will create as many as 1,300 permanent industrial jobs and 400 construction jobs. By establishing a new public-private partnership model for industrial redevelopment, NYCEDC expects that this important building will serve as a model for future redevelopment along the Brooklyn waterfront and in the rest of the City.

Supporting Hunts PointThis past year, the City and NYCEDC made significant headway in our ongoing efforts to support the Hunts Point Market in the South Bronx. In June 2011, we reached an agreement with the Hunts Point Terminal Produce Cooperative to extend its lease for another three years, while the Cooperative and NYCEDC work together to develop a long-term plan for a larger, modernized facility in the Bronx. To this end, the City and State have each agreed to contribute capital resources and to work with the Cooperative to secure additional third-party sources of funding.

9

Increasing Transparency and AccountabilityIn the fall of 2010, two entities administered by NYCEDC, the New York City Industrial Development Agency (NYCIDA) and the New York City Capital Resource Corporation (NYCCRC) approved a suite of reforms that will increase their transparency and accountability. These efforts include broadcasting public hearings and board meetings, as well as more stringent job reporting and compliance requirements in connection with City investments in projects throughout the five boroughs. These reforms will ensure that, going forward, the City will be serving its businesses even more efficiently and openly than it has to date.

Supporting the Air Cargo IndustryIn February 2011, NYCEDC, in partnership with the Port Authority of New York and New Jersey, released a Request for Proposals for a consultant to conduct an in-depth study of the air cargo industry in order to identify opportunities to increase and expand this critical sector of the economy. Supported by funds from NYCIDA and the Port Authority, this study is designed to provide actionable steps to reverse the recent decline in air cargo volume at the Citys airports. Even after this decline, regional cargo operations today directly support over 84,000 jobs and $3.6 billion in wages, generating $10.8 billion in sales. The findings of this study, which are expected to be released in 2012, will provide a roadmap for helping the City and Port Authority to bolster the position of the airports for years to come.

JFK Airport


ARTS

FASHIONSupporting the Fashion IndustryIn January 2010, NYCEDC launched Fashion NYC 2020, a year-long study designed to examine the state of the fashion industry and identify strategies to enhance the Citys position as the fashion capital of the world. Based on detailed analyses and a series of dialogues involving leading figures in the industry, emerging entrepreneurs, academics, and others, NYCEDC identified two specific challenges that the industry faces in New York: first, a need to attract more, young managerial talent; and second, a need for the City to continue to enhance its standing as a hub of innovation for specialty and multi-channel retail. To address these issues, in November 2010, Mayor Bloomberg announced a suite of innovative programs that will be rolled out over the course of 2011 and 2012. These include two initiatives on which NYCEDC is partnering with Parsons The New School for Design: Fashion Campus NYC, led by industry executives aimed at fashion students and interns; and NYC Fashion Draft, a program that will bring together NYC-based businesses and top-ranked students from all over the world for an organized interview program.

Artist as Entrepreneur event

Building Artists Business SkillsThe Artist as Entrepreneur workshop series, now in its second year, provides City artists with free training to help them develop the skills that they will need to run successful businesses. Launched in 2010 with a $50,000 grant from NYCEDC, and operated by the New York Foundation for the Arts and the Lower Manhattan Cultural Council, the program has already provided an intensive boot camp experience to 100 artists, in which they learn to create and manage budgets, develop business plans, and undertake successful marketing efforts. Artists who complete the program are also eligible to receive low-cost incubator space run by Chashama at NYCEDCs Brooklyn Army Terminal complex where they can put their newly-developed skills to work.

Supporting ArtistsIn the fall of 2010, NYCEDC and Full Spectrum Experience launched Curate NYC, a competition to increase exposure for local artists by placing their work in City-owned spaces. More than 1,200 artists applied to participate, with a panel of highly-regarded judges selecting 150 pieces of artwork for display. NYCEDC is working to expanding this program to new locations in 2011.

11

MEDIA AND TECHNOLOGYBigApps 2.0In April 2011, Mayor Bloomberg, NYCEDC and the Citys Department of Information Technology and Telecommunications announced the winners of the second annual NYC BigApps Competition, a competition designed to increase transparency and spur entrepreneurship in the technology sector. This year, the City made more than 350 sets of official New York City data from over 50 City agencies available to software developers and members of the public (50% more sets than were available the previous year), challenging them to use them to create new web and mobile applications. The second annual competition built on the success of the competitions inaugural year, during which several successful businesses were launched. Based in part on the results of the first year of the competition, during 2011, BMW decided to set up a new $100 million venture fund in New York and to become an official competition sponsor. As a result of this

partnership with BMW, the City was able to award $40,000 in prizes among fourteen innovative winners in the competitions successful second year.

Connecting Public and Private EnterprisesWith our partners at the Polytechnic Institute of New York University and Columbia University, NYCEDC is continuing to support the nations first, government-sponsored Media Lab, which was established in June 2010. The goal of the Media Lab is to help New York-based media companies gain insight into important trends in the industry and to pull the cutting-edge R&D taking place in our Citys premier academic institutions out of the lab and into the real economy. During the past year, The New York City Media Lab has attracted more than 200 active members and hosted 10 workshops.

BigApps 2.0 competition winner, Roadify

SPORTANEOUS | business spotlightGROWING UP IN SAN DIEGO, Aaron Royston and Omar Haroun often drove past public basketball courts hoping to find people to join in a pick-up game. But as they entered professions of venture capital and law respectively, it became difficult to commit to the strict schedule of a sports team, and they ultimately lost touch with their favorite activity. Realizing that they were not the only young professionals facing this dilemma, and recognizing that smartphone technology could easily connect people to games taking place in their communities, they launched Sportaneous. Sportaneous is a location-based online and iPhone application that allows users to find fellow athletes to play games with at nearby public facilities. Users can organize games based on skill level, location, and team size for nine different sports including basketball, soccer, football, and ultimate Frisbee as well as invite other users to join. Aaron, President, and Omar, CEO, were working at a tech startup accelerator program in the City when they learned about the NYC BigApps 2.0 Competition and recognized the potential of the 350 data sets the City was making available. We thought it would be a perfect opportunity for us since we were already using public data of all the parks and recreation in New York, said Aaron. Opening up data sets and supporting New Yorkers to come up with a solution instead of just public officials coming up with solutionswe think its capitalism at its finest. Of the 58 total submissions, Sportaneous won second place overall and was the popular choice award-winner, collecting a total of $10,000 in award money from the City and its partner BMW. Other applications included the grand-prize-winning Roadify iPhone App, which updates commuters on subway, bus, and traffic conditions in real time. Third place was awarded to Parking Finder, which allows commuters to navigate interactive maps for free and metered parking. Within three to four weeks after the NYC BigApps Competition, Sportaneous received an additional 3,000 to 4,000 downloads and is currently up to about 8,000 users. Winning the grant helped encourage Omar to stick with the venture despite the risks, and it reassured him that he and Aaron were not the only ones who saw Sportaneous as an innovative platform. The windfall even took Aaron and Omar to the White House for President Obamas Champions of Change event on June 10, where U.S. Chief Technology Officer Aneesh Chopra honored innovative application developers who harnessed the potential of government open data sets. I guarantee the White House became aware of us through winning BigApps, said Aaron. That was a definite starting point. Sportaneous, which also operates in San Diego, saw a unique business opportunity in New York City, crediting its high population density, vibrant tech scene, and the high level of support from the local government. Aaron also praised New Yorkers for being very open to new ideas and much more willing to engage and break their routine. In the coming year, Sportaneous plans to launch in additional U.S. cities, and will be working to improve its user engagement, as well as increasing marketing efforts. The company is also developing a predictive push notification to alert users about ongoing games based on location, preferences and past usage. Both co-founders are now New York City residents, and have their favorite places to play locally. They are, however, always looking forward to discovering new facilities throughout the City.

13

EMERGING INDUSTRIESGREENConnecting Green BusinessesIn January 2011, NYCEDC launched the NYC Urban Technology Innovation Center (NYC UTIC), a unique new institution developed in partnership with Columbia University, Polytechnic Institute of New York University and the City University of New York. Through networking seminars and a detailed database, UTIC connects pioneers in the field of green building to the individuals and businesses that are most likely to utilize green building technologies, such as real estate developers and building owners. By increasing knowledge sharing and supporting cooperation, UTIC encourages innovation among entrepreneurs and others and promotes the more effective use of clean technology in the Citys buildings.

Expanding Solar PowerIn 2011, NYCEDC selected twelve businesses and institutions to participate in its pilot Solar Thermal Grant program. These businesses and institutions will receive grants of up to $50,000 each to install solar thermal systems in their premises, permitting them to use sunlight to create hot water, thereby saving energy and money. The goal of the program is both to promote the use of the technology and to develop a better understanding of, and solutions to, the financial, technical, and regulatory issues associated with this emerging technology.

Building a Solar MapIn June 2011, NYCEDC partnered with the City University of New York and the United States Department of Energy to launch the New York City Solar Map. This innovative online, interactive tool displays real-time solar energy capacity citywide, educating New Yorkers about the costs, benefits, and payback periods of investing in solar installations for their properties.


BIOSCIENCECreating Wet Lab SpaceIn December 2010, Mayor Michael Bloomberg joined our partners, including Alexandria Real Estate Equities, at the ribbon cutting ceremony for the Alexandria Center for Life Science at East River Science Park in Manhattan. The new facility inaugurated by Mayor Bloomberg is a 310,000-square-foot, 15-floor, state-of-the-art tower, which is to serve as the anchor for a three building, 1.1 million square-foot life science campus. Work on the second tower of the campus is expected to commence within the next two years, dove-tailing with construction that is to commence in 2011 that will double in-place lab space at the BioBAT complex in Sunset Park, Brooklyn, sponsored by SUNY Downstate Medical Center and NYCEDC.

bioscience start-ups, bringing the total funding allocated by this program to nearly $3 million. The New York City Investment Fund developed this program, in collaboration with NYCEDC, with the aim of assisting early-stage businesses to navigate the so-called valley of death between the development of a bioscience concept and the commercialization of that concept.

Helping Bioscience Businesses CompeteOver the past year, NYCEDC held regular Small Business Innovative Research (SBIR) Proposal Preparation Workshops aimed at helping academic researchers and bioscience entrepreneurs learn how to access the more than $2 billion in annual funding available through this competitive federal program. To date, these workshops have hosted more than 500 participants, with over 70% of these participants reporting that they applied for funding thanks to the assistance they received from NYCEDC.

Seeding Bioscience BusinessesDuring 2011, the second annual Bioaccelerate competition provided $1.5 million in funding to New York City-based

15

Alexandria Center


CRUISEExpanding Cruise Service from New York CityNYCEDC is working to expand the cruise industry in the City by modernizing and renovating the Citys Cruise Terminals in Brooklyn and Manhattan and by raising awareness domestically and internationally of the Citys many offerings. In January 2011, NYCEDC released the results of a new Cruise Economic Impact Study, demonstrating the success of NYCEDCs cruise-related efforts. According to the study, between 2009 and 2010, passenger arrivals in New York rose by 33% with on-shore passenger spending in the City up more than 54% from $93 million to $144 million.

NYCEDC President, Seth Pinsky, speaks at the Disney press conference

EMPLOYEE SPOTLIGHT

Thomas SpinaDirector of Cruise Ship Operations

THE CAPTAINThomas Spinas passion for the water began at an early age, starting with his childhood near the ocean in Moriches Bay on Long Island, New York. Now, as NYCEDCs Director of Cruise Ship Operations, he has the opportunity to work in an industry he loves, continuing his lifelong pursuit of maritime service. Tom graduated from the SUNY Maritime Program in Throggs Neck in New York, served in the Coast Guard at Battery Park and in Washington D.C., and worked as a marine surveyor before joining NYCEDC in January 2007. Toms qualifications make him one of the few, if not the only, NYCEDC staff member qualified to be a Third Mate on any ship in the world.

In the past five years, the City has made significant investments to modernize and renovate the Manhattan and Brooklyn Cruise Terminals, and Tom saw it as his teams responsibility to make good on those investments by generating revenue and making New York City a hub for the industry. To achieve this, Toms primary focus has been on maximizing the use of the cruise facilities, as well as increasing direct and indirect revenue to the City through tourism. When Tom first started at NYCEDC, many people in the tri-state area were driving to the ports, and once they eventually returned, would drive home. By 2010, however, 63% of all passengers were from outside the tri-state area and nearly half of all cruise passengers were staying at least

two nights in the City, spending more than $400 on average. Building on this momentum, in May 2011 Disney Cruise Ships announced that beginning in 2012, the Disney Magic would embark on twenty cruises from the Manhattan Cruise Terminal to destinations ranging from the Bahamas to Canada. The port calls by the Magic are expected to bring an additional 45,000 embarking passengers into New York City annually, resulting in an estimated $11 million in incremental direct spending per year. In the coming years, Tom is looking forward to continuing to expand the cruise industry by growing international awareness of the Citys world-class ports, and providing even more opportunities for residents and visitors year-round.


ENTREPRENEURSHIPAs we work to bolster the Citys legacy industries and to attract emerging industries, NYCEDC recognizes that we also need to ensure that the City is well-positioned in the industries of tomorrow. To achieve this goal, NYCEDC is working to give the Citys talented workforce the resources that it needs to succeed as entrepreneurs, while providing access to training, networking and mentoring, new sources of capital, and affordable workspaces. These resources are being made available not just to those segments of the Citys workforce who have traditionally excelled as entrepreneurs, but also to more disadvantaged segments of the Citys workforce throughout the five boroughs. As NYCEDC seeks to promote entrepreneurship citywide, a critical part of its strategy is connecting New York Citys academic institutions to one another and to the larger economy, with the goal of harnessing their dynamism to catalyze new business creation. As in all segments of the Citys economy, in the entrepreneurial sector, an important element of success is the level of innovation occurring within the five boroughs. In 2011, in an attempt to measure the level of this activity, NYCEDC developed its Innovation Index, the first composite index to track overall innovation activity

and trends in New York City over time. According to the Index, between 2003 and 2009, innovation-related activity increased by twelve percent in the City. Going forward, NYCEDC intends to update the index regularly, to allow it and the public to monitor the success of its various initiatives.

TRAINING, NETWORKING AND MENTORINGJumpstarting EntrepreneursIn 2011, NYCEDC and SUNYs Levin Institute expanded JumpStart NYC, an innovative job retraining program. This program, which was established in 2010, offers an entrepreneurial bootcamp to recently-unemployed professionals looking to learn the skills necessary to start and grow their own businesses. After participating in the bootcamp, participants are offered 10-week unpaid internships with start-up companies, which have the potential to convert to full-time employment. To date, over 400 entrepreneurs have completed this program.

Expanding Business TrainingWith our partners at the NYC Department of Small Business Services and the Kauffman Foundation, we are continuing to

Seth Pinsky speaks to finalists from NYC Next Idea

19

support FastTrac, a training program that helps entrepreneurs learn how to start, run and expand their businesses. In the programs first three years, this program has offered over fifty workshops attended by nearly 1,500 participants.

Attracting International TalentIn April 2011, Mayor Bloomberg and NYCEDC selected the two winning teams for NYC Next Idea, a global business plan competition that encourages innovative business ventures to launch and grow in New York City. In its second year, the competition, administered in partnership with Columbias Engineering School, was expanded to include a graduate track and an undergraduate track. As a result, this year, over 150 business plans were submitted from 30 different countries. for the first time, to students based in New York City. In 2012,Undergraduate Winner: ReFleX

INCREASING ACCESS TO FUNDINGSeeding Technology Start-upsIn June 2011, NYCEDC announced the latest investment by its NYC Entrepreneurial Fund. The investment was in Medico.com, Inc., a global, health-focused Internet company. Created by NYCEDC in 2010 and managed by the venture capital firm, FirstMark Capital, the NYC Entrepreneurial Fund provides promising New York City-based start-up companies with early-stage capital. The fund, the first of its kind outside of Silicon Valley, is capitalized with $3 million from NYCEDC and up to $19.5 million from FirstMark.

NYCEDC plans to expand the competition further, opening it up,

Bringing the World to New York CityIn December 2010, NYCEDC launched the World to NYC program, hosting three separate delegations of business leaders and entrepreneurs from China, Great Britain, and Singapore. This program allows global companies interested in expansion to learn first-hand about New York Citys unique business resources, meet with NYC business leaders, and gain insights into potential opportunities for their ventures in the City.

Assisting Emerging LeadersIn December 2010, Mayor Michael Bloomberg announced the members of the inaugural class of the NYC Venture Fellows program. This joint effort between NYCEDC and Fordham University fosters collaboration between start-up ventures and established businesses, connecting later-stage start-up entrepreneurs from around the world with mentors from leading New York companies. The goal of the initiative is simultaneously to foster entrepreneurs now located in New York and to encourage entrepreneurs now outside of the City to consider expanding their operations to New York.

Assisting Small BusinessesIn 2011, NYCEDC reached new milestones in its effort to support small businesses through its Capital Access Loan Guarantee Program. Introduced in 2009 to help small and micro-businesses, this program has made more than $6.5 million in working capital and capital expenditure loans available to more than 200 companies impacted by the national downturn, located throughout all five boroughs. 20 employees. In total, more than

90% of these loans were made to businesses with fewer than

BABY CAKES AND PIE, COOKIES TOO | business spotlightIN 2008, NEW YORK RESIDENT DIANE SCOTT-SHO had been working as a professional organizer for ten years, coordinating international relocations as well as moves for senior citizens. But when the recession hit and took away jobs in the industry, Diane made the life-altering decision to change her career path by returning to her roots. I grew up in my great grandmothers kitchen and she was a farmers daughter and a farmers wife, so she made everything from scratch, Diane said about her childhood in Virginia. So cookings always been an obsession with me. In the summer of 2010, using her experience catering part-time and six months of classes at Peter Kumps Institute of Culinary Education in New York City, Diane launched Baby Cakes and Pie, Cookies Too from her own kitchen. She started by going door-to-door with a stroller of individual sized desserts and handing out samples at personal care salons in Harlem sweet potato pound cake, banana walnut bread, lemon lime cheesecake with gingerbread crust, and more. After taking a business class and researching the markets potential, she realized that to succeed on a larger scale, she would need commercial space. Acknowledging that it would be daunting to take her basket onto the street each week, she also recognized she would need additional mentoring. Diane applied to the Hot Bread Kitchen incubator and was delighted to be accepted into the second batch of tenants in April. The HBK incubator in La Marqueta provides equipment, training and workspace for small food-manufacturing businesses like Dianes. Since relocating her operations to the incubator, the quality equipment and facilities have allowed her to increase volume and efficiency while keeping her operating costs manageable. The HBK team has assisted Diane with increasing production, creating packaging, and accessing credit. In addition, she has been able to obtain marketing, financial and legal advice through the available business coaches and classes. Baby Cakes and Pie, Cookies Too is now an officially trademarked LLC. All of those things would actually cost a fortune if I had to take individual classes or I had to hire somebody to scale up the recipes, but theyre teaching me to do that, she said. They are willing to help wherever they can, however they can. HBK, as well as the other incubator tenants, have introduced Diane to a number of unique business opportunities, such as the market at the 92nd Street Y and future Home Harvest markets in Harlem. Diane credits HBK with fostering a strong communal culture, and she appreciates the way the staff stresses the importance of collaboration among the tenants in order to create the best businesses and the best products possible. In the next six months, Diane has plans to expand her operations and distribution. She hopes to hire up to six new employees to help sell her delicious baked goods throughout Harlem and to expand to new locations throughout the City. Eventually, with HBKs help, she hopes to cultivate an efficient, wholesale business. All these little things are just falling into place.

21

AFFORDABLE WORKSPACEBuilding a City-Wide Network of IncubatorsThis year, NYCEDC announced the creation of its ninth, Citysponsored incubator part of a network that provides affordable workspace, as well as training and mentoring programs across New York. Overcoming the high cost of real estate is one of the major challenges that fledgling business ventures face, which makes our incubators a critical resource for the Citys growing businesses. By the end of 2011, these incubators are set to offer a total of 125,000-square-feet of work space, housing businesses that, to date, have successfully raised more than $39 million in venture funding and created or sustained more than 800 jobs and over the next three years are expected to have the capacity to house more than 1,000 businesses and 1,200 entrepreneurs. During the past year, some of the tenants in NYCEDCs incubator network began to graduate into market-rate space, while continuing to expand the ultimate sign of success. The Citys network includes the Hive at 55 for media freelancers in Lower Manhattan; the CFDA Fashion Incubator in the Garment District; an arts incubator managed by Chashama at the Brooklyn Army Terminal in Brooklyn; and the Varick Street Incubator for technology start-ups, operated by the Polytechnic Institute of New York University in Tribeca.

Incubating for Success in ManhattanIn January 2011, Mayor Michael Bloomberg joined our partners at General Assembly in opening a new technology and design campus in Manhattans Flatiron district, designed to incubate new businesses. This facility houses event space, seminar rooms, a state-of-the-art media facility, and work areas to provide start-ups with affordable workspace. In addition, thanks to a $200,000 grant from NYCEDC, General Assembly now offers a series of seminars and workshops on topics ranging from graphic design to accounting that are free and open to the public. Less than six months after its launch, it is already operating at full capacity, with more than seventy communal members and thirty dedicated members.

Fostering Food Manufacturing Start-ups in HarlemIn January 2011, City Council Speaker Christine C. Quinn and local elected officials joined NYCEDC at the opening of a new kitchen incubator at La Marqueta in East Harlem. This renovated 3,000-square-foot facility is operated by HBK Incubates and provides shared workspace, business training services, and technical assistance to small food-related businesses, with the goal of helping the owners of these businesses make the transition from home kitchens to professional spaces.General Assembly


Spurring Entrepreneurship in BrooklynIn the summer of 2011 NYCEDC and the Polytechnic Institute of New York University announced the creation of the DUMBO Business Incubator in Downtown Brooklyn. Targeted at entrepreneurs across a range of industries but focusing on technology businesses, this 6,500-square-foot space will house approximately thirty workstations and provide tenants with access to educational programming, business counseling sessions, and networking opportunities.

includes a 7,000-square-foot general business incubator offering affordable workstations open 24 hours-a-day, job training programs, and mentoring services. The facility is managed by QEDC in cooperation with food industry consultant Mi Kitchen es su Kitchen. Currently, more than 100 businesses use the incubators services.

Supporting Small Businesses in the BronxIn November 2010, Mayor Michael Bloomberg joined our partners, including Sunshine Realty Management, to break ground on our first business incubator in the Bronx. This incubator, located in Hunts Point, will have the capacity to host up to 400 entrepreneurs over a three year period. Through a partnership with Baruch College, it will also provide business support and mentoring support services. The Sunshine Incubator is set to open in 2011.

Launching a New Incubator in QueensIn January 2011, NYCEDC, working with its partner the Queens Economic Development Corporation (QEDC), opened the Entrepreneurs Space in Long Island City in Queens. This site includes a 5,000-square-foot kitchen incubator with four commercial-grade kitchens, where products ranging from baked goods to granola to tacos are produced. The site also

Sunshine Incubator

EMPLOYEE SPOTLIGHT

Immigrant Entrepreneur TeamFrom left: Hunter Goldman, Tracy Massel, Peter Gratzke, Dara Nussbaum-Vasquez, and Josh Winter

The idea for NYCEDCs Immigrant Entrepreneur initiatives was developed through extensive conversations with community-based organizations and advocacy groups. Recognizing the important role that immigrants play in our economy, and considering their disproportionately high level of entrepreneurialism, an interdepartmental team was formed to determine how this growth could be nurtured. What they determined was that, despite this entrepreneurial spirit, the immigrant entrepreneur community faced a number of hurdles such as language barriers, lack of trust, lack of resources, and difficulty accessing regional and national markets. Together, Tracy Massel, Josh Winter, and Peter Gratzke in the Strategic Planning department, Dara Nussbaum-Vasquez and Hunter Goldman in Government and Community Relations tackled these

challenges head on. Drawing on their wide range of expertise and experiences, they developed and launched three separate pilot programs designed to help immigrant entrepreneurs overcome challenges and grow their businesses. Each of these programs takes advantage of the recommendations and resources of community-based organizations, and they are envisioned as a full cooperative effort with the communities in which these entrepreneurs live. In the teams eyes, one of the Citys greatest assets is its incredible cultural diversity and large number of community-based organizations. However, this may create challenges as well, with many individuals struggling to connect with the appropriate organization. These programs are designed to address this and other challenges by centralizing and streamlining resources, and to strengthen and

build community relationships by working side-by-side to achieve mutual goals. In the next year, the team is looking forward to seeing the results of these initiatives and finding new ways to expand the programs. In five to ten years, they hope to see businesses that today employ five or ten employees grow to become anchors in their communities, and perhaps even a household name. While these pilot initiatives are designed to have measurable, positive effects on economic growth, the team foresees a number of less tangible, but equally important benefits. They see these initiatives as playing an important role in demonstrating how immigrant owned businesses are a crucial engine for job creation and an incredible source of economic growth for New York City.


INCREASING OPPORTUNITY

Foundation and Baruch College, invites community-based organizations to submit proposals for new programs designed to address the special needs of immigrant entrepreneurs. Through the competition, five finalists will be awarded $25,000 each to test their programs, with the ultimate winner receiving $100,000 to scale its program City-wide.

Expanding Support for M/W/DBE BusinessesIn November 2010, in coordination with the New York City Department of Small Business Services, NYCEDC announced a suite of initiatives designed to assist Minority-Owned, Women-Owned and Disadvantaged Business Enterprises (M/W/DBE) businesses more effectively. These programs will build upon NYCEDCs success in recent years, during which we have consistently surpassed our M/W/DBE goals on applicableCompetition THRIVE information session

construction and professional services subcontracts. The new programs will, among other things, increase training for potential M/W/DBE partners, expand our outreach programs to the M/W/DBE community, improve the transparency of the procurement process, and provide millions of dollars in loans to M/W/DBE businesses for mobilization and start-up purposes.

Supporting Immigrant EntrepreneursIn March 2011, following a year-long series of roundtables with community-based groups, NYCEDC announced three pilot initiatives designed to assist the Citys immigrant entrepreneur community. Studies show that this community tends to start businesses at a higher rate than American-born individuals, but also tends to see a higher failure rate among its start-ups than the native born population. To support the immigrant populations entrepreneurial ventures, NYCEDC is launching a series of pilot programs to test new approaches. These include working with the Department of Small Business Services to expand NYC Business Solution courses to new locations and translate those courses into new languages. NYCEDC is also hosting a business expo to showcase New York City-based immigrant food manufacturing businesses to national and international customers, and is launching the Competition To Help Reach Immigrant Ventures and Entrepreneurs or Competition THRIVE. The THRIVE competition, which is being developed in conjunction with the Deutsche Bank Americas

25

CONNECTING ACADEMIA TO THE ECONOMYApplied Sciences NYCIn December 2010, Mayor Bloomberg and Deputy Mayor Robert Steel, working through NYCEDC, issued a challenge to academic institutions both in New York City and worldwide, seeking proposals for a partnership to create or materially expand a world-class applied sciences and engineering facility within the five boroughs. In exchange, the City proffered technical support, capital and access to one of three City-owned sites in Brooklyn, Staten Island, and on Roosevelt Island, and Governors

Island. In response to this challenge, in March 2011, NYCEDC received 18 proposals from 27 top-tier institutions, including local, national, and international respondents. Building on this momentum, NYCEDC is moving forward with a second round of the challenge, with selection of a partner or partners to occur by the end of calendar year 2011. When completed, the new facility is expected to produce commercially-applicable research and development, increasing New York Citys success in a number of burgeoning fields. According to projections prepared by NYCEDC, when up and running, the facility could create hundreds of new companies, generating up to $6 billion in economic activity and nearly 30,000 construction and permanent jobs.

At a time when many cities in the United States are shying away from new capital investments and deferring maintenance of their existing infrastructure, under Mayor Bloombergs leadership, New York City is doing exactly the opposite.

Building Sustainable Infrastructure

The reason for this is that, during the 1970s, we learned what happens when we balance our budget by allowing our infrastructure to decay. Our decision then turned out to be a disaster, costing us billions of dollars over the long-run and requiring decades of hard work simply to get us back to where we had been before this disinvestment. However, merely getting us back to the state of good repair that we had prior to the 1970s is no longer enough. This is because, in todays world, cities around the globe are making major investments, creating physical plants that equal, and in some cases, even surpass those of New York. To ensure that the City is not left behind, NYCEDC is making critical investments in our future, with over two billion dollars ready for deployment over the next ten years throughout all five boroughs. These new investments run the gamut: from basic infrastructure, such as pipes and wires; to world-class amenities such as parks and schools; and, in some cases, even to whole new neighborhoods. In making our investments, we aim to catalyze private sector investment that, together with the Citys capital, will help to ensure that New York City remains a place where our people and businesses are able to maximize their potential for decades to come.


WATERFRONT AND OPEN SPACEWaterfront Vision and Enhancement StrategyIn March 2011, Mayor Bloomberg and City and Federal officials, including officials from NYCEDC, introduced the New York City Waterfront Vision and Enhancement Strategy (WAVES), a multi-agency, citywide initiative designed to create a blueprint for the long-term sustainability of the Citys 578 miles of shoreline. WAVES has two core components: Vision 2020: The New York City Comprehensive Waterfront Plan, which establishes a strategic land-use framework for the next decade and beyond; and The New York City Waterfront Action Agenda, which commits to a list of priority projects to be implemented over the next three years. The initiatives described in the WAVES plan address a broad a range of issues, including open space and recreation, the needs of our working waterfront, climate change adaptation, andwaterborne transportation.

Shore PowerIn April 2011, a partnership of the Port Authority of New York and New Jersey, the U.S. Environmental Protection Agency Regional Administrator, the New York Power Authority, and NYCEDC introduced so-called shore power at the Brooklyn Cruise Terminal. This green technology allows cruise ships to turn off their engines while in port, plugging instead into the Citys power grid. This new technology will result in the elimination of 1,500 tons of carbon dioxide, 95 tons of nitrous oxide, and 6.5 tons of particulate matter annually the equivalent of taking 5,000 cars off the road. This project will make a significant contribution to the Citys goal of adapting the waterfront to uses that are simultaneously environmentally-friendly and job-creating.

Rendering of Sims Recycling Plant

EAST RIVER FERRY | business spotlightIN JUNE 2011, MAYOR BLOOMBERG, NYCEDC, and local elected officials gathered to take the first ride on the Citys new East River ferry service. Operated by BillyBey Ferry Company and NY Waterways, the East River Ferry is a three-year pilot project to create a convenient and sustainable transportation option for New York City commuters. It provides year-round ferry service to East 34th Street and Pier 11 in Manhattan, Long Island City in Queens, Greenpoint, North Williamsburg, South Williamsburg, and DUMBO in Brooklyn. In the summer service is also available to Brooklyn Bridge Park and Governors Island providing access to popular recreation destinations outside of Manhattan. As part of the ferry service, a free bus departs from the 34th St. ferry landing during peak hours and makes multiple stops in Midtown Manhattan. In addition, new ferry landings were constructed at the North Williamsburg and Greenpoint sites in order to complete the infrastructure needed. NY Waterways, NYCEDCs partner in this initiative, is the largest privately-owned commuter ferry service operator in the nation, carrying 30,000 passenger trips per day and a total of 8 million trips per year in New York State and New Jersey. Since launching their first ship in 1986, NY Waterway has carried over 65 million passengers in total. With the East River Ferry, these services will now be available to hundreds of thousands of additional residents in vibrant, growing neighborhoods throughout the City. In the first three months of operation, the East River Ferry surpassed expectations, with more than 225,000 passengers taking advantage of this convenient and scenic transportation option. In order to determine which ferry route in the City would be the most viable and require the least amount of City subsidy, NYCEDC conducted a comprehensive study of possible ferry routes along the Citys 500 miles of shoreline. This study found that the route along the Citys east shore appeared to be the most promising, considering the majority of residents in these neighborhoods commute into Manhattan, yet are often underserved by transportation options. The study also found that in most of these neighborhoods the majority of residents were within walking distance of a ferry landing. In addition, many of the neighborhoods along the East River Ferrys route were rezoned recently and feature new, large-scale, high-density residential developments at the waters edge, and have seen tremendous residential growth. In the past three years alone, there have been 6,000 housing units built, and there are 2,000 more units under construction, with an additional 21,000 planned. Increased access to the waterfront and new transportation options in these underserved areas will help attract additional residents and businesses, thereby spurring economic growth. In addition to the economic impact it will provide, this ferry service is also a key component of the Citys WAVES program providing a sustainable transportation option that will reduce traffic congestion, while reconnecting visitors and residents to the Citys waterfront. So far, both regular and infrequent Ferry commuters have praised the service as more comfortable and more relaxing than other mass transportation options. Even when traveling for recreation on weekends, users have found the service effective. The East River Ferry made it so easy, fast, and pleasant, Manhattan resident Anna Lindow said about traveling to Governors Island. I was amazed by how efficient and enjoyable the ride was. For some travelers the simple appeal is a change of scenery out on the Citys waterways. The minute I cross the street and hear the waterI start feeling better, said Cynthia Riehle on her way to Brooklyn.

Heritage Field Park, Yankee Stadium

Sims Recycling Plant and Axis GroupIn October 2010, Mayor Bloomberg joined local elected officials and NYCEDC to break ground on the Sims Recycling Plant at the 30th Street Pier in the South Brooklyn Marine Terminal of Sunset Park. A joint project of NYCEDC, the Department of Sanitation, the Department of Small Business Services, and Sims Metal Management, this state-of-the-art facility will enable much of the Citys recyclables to travel via area waterways, thus displacing 260,000 vehicle miles annually. Complementing this new facility, the City is also investing in an adjacent auto processing and cargo handling facility for the Axis Group. Thanks to these investments, these important maritime assets, which have been dormant for years, will once again be the site of hundreds of permanent jobs, thereby advancing two of the Citys important objectives: reviving the working waterfront and reducing the Citys carbon footprint. Construction on both facilities is anticipated to be completed in 2011.

Spanning the length of ten blocks, the second section of this world-renowned park doubles the length of the parks first section and features new and innovative design elements. Since the opening of the parks first section in 2009, the High Line Park has emerged as a destination for tourists and residents alike, attracting an estimated two million visitors. The park has also made a significant contribution to the economic growth of the neighboring areas, with approximately four million-square-feet of new development and an estimated $2 billion in private investment occurring in the area since 2009.

Heritage Field ParkThis past year, NYCEDC completed major construction ahead of the opening of Heritage Field, a ten-acre park located in the footprint of the original Yankees Stadium. This world-class public amenity will include three professional-quality fields and various commemorative details marking it as the site of the original stadium. The opening of Heritage Field represents the final piece of the Citys $195 million investment in South Bronx open space that will not only replace, but will also upgrade and significantly expand on the 22 acres of parkland displaced during the new Stadiums construction. The park is set to open during the fall of 2011.

The High Line ParkIn the spring of 2011, NYCEDC completed construction of the second section of the High Line Park, a formerly abandoned elevated rail structure running along Manhattans West Side.

EMPLOYEE SPOTLIGHT

David KaneExecutive Vice President, Capital Programs

THE BUILDERTrained as a civil engineer, city planner, and project manager, David Kane has been involved in some of the most complex large-scale projects in New York City over the past 15 years. This list includes: the development of the Citys minor league baseball stadiums in Staten Island and Coney Island, streetscaping projects in the commercial corridors of Bedford-Stuyvesant, area-wide developments such as Willets Point and Hunters Point South in Queens, the demolition of the old Yankee Stadium in the Bronx, the restoration of public parks in the footprint of the old Stadium, and the construction of a new classical theater in Brooklyns emerging BAM Cultural District. Dave joined NYCEDC in 1997, working his way through the ranks from a Senior Project Manager to the head of the Capital Program. In this role, David leads a group of

25 employees responsible for the design, approval, and construction of approximately 250 active NYCEDC projects across the five boroughs. These projects have a portfolio value of approximately $3 billion, and David and his team are tasked with ensuring the completion of these projects is both on-time and on-budget. The group hires engineers, design consultants, construction managers, and any others needed to execute projects, which often involve complex interagency and interdivisional cooperation. These projects have given David the incredible opportunity to reshape the face of the City. Recently, David oversaw the completion of Section 2 of the High Line, the Citys one-of-a-kind park atop a former elevated railway. Since its inception in 2005, the High Line has transformed the surrounding neighborhood, becoming a quintessential New York City destination.

The area has also seen the development of new commercial buildings, such as the Frank Gehry-designed IAC headquarters and the Standard Hotel. NYCEDC is also in the design phase of the High Lines four-level Maintenance and Operations Facility, and in May 2011, began construction of the new home for the Whitney Museum of American Art, designed by renowned architect Renzo Piano. The Whitneys new home will be located at the foot of the High Line on Gansevoort Street. Projects like these, which improve

commercial districts and provide residents with important amenities, have made Daves time at NYCEDC very fulfilling. The opportunity to lead the department only fortified his desire to have an impact. When I drive around the City and see those projects, thats what keeps me herehaving such a tremendous impact on the City.


MIXED-USE SPACECharleston Municipal SiteIn January 2011, NYCEDC released a Request for Proposals for the purchase and development of two 10-acre parcels of City-owned property in Staten Island for retail and other uses. The proceeds from the sales of these two parcels are expected to be used to catalyze the development of the 58-acre Charleston Municipal Site. Upon completion, this substantial City-owned site will include renovated infrastructure, a twenty-two acre public park, senior housing, a new public library and public school, as well as full development of the two retail sites that were the subject of the January RFP.

intersection of Third Avenue, Melrose Avenue, and East 149th Street, this development will support an important emerging commercial corridor. Construction is expected to commence by fall of 2012.

210 JoralemonNYCEDC joined Mayor Bloomberg, Deputy Mayor Robert Steel and Brooklyn Borough President Marty Markowitz in December 2010 to announce the issuance of a Request for Proposals to repurpose part of the Brooklyn Municipal Building in Downtown Brooklyn for retail use. Upon selection of a development partner, the site will be reconfigured, with the aim both of advancing the Citys effort to reduce the office space that it occupies and of creating approximately 37,000-square-feet of new space for development. This Downtown Brooklyn project will build on the dynamic transformation of the area since its rezoning in 2004. NYCEDC expects to select a developer for the site in the summer of 2011.

Mart 125In May 2010, NYCEDC issued a Request for Proposals to redevelop Mart 125, into a commercial and cultural center. Seeking design excellence reflective of the sites prominent location in the heart of the special 125th Street District, the RFP aims to reactivate the site to include cultural space to be operated by the National Jazz Museum in Harlem and ImageNation Sol Cinema. NYCEDC hopes to announce the selection of a development partner during fiscal year 2012.

The Hub at 149th StreetIn May 2011, NYCEDC announced that Triangle Equities will purchase and develop two parcels adjacent to the Hub at 149th Street in the Bronx. Triangle Equities will invest $35 million to develop two new buildings on the parcels, providing a variety of amenities including a new supermarket, a 50,000-square-foot school, restaurants, community facilities, and over 6,000-square-feet of additional retail space. The development is projected to create hundreds of permanent and construction jobs, the hiring process for which will be coordinated with HireNYC, a City program that connects local residents to economic development projects. With its central position at theRendering of 210 Joralemon

33

AREA-WIDE DEVELOPMENTWillets PointThis past year, following decades of challenges and set-backs, NYCEDC made significant strides in its effort to re-develop Willets Point, a 60-acre site in Queens that suffers from environmental contamination and has limited connectivity to the Citys basic infrastructure. As of June 2011, the City had agreements with, or owned, nearly 90% of the property in the portion of the site on which construction is anticipated to first occur. This first phase alone is expected to create hundreds of units of new residential housing 35% of which will be affordable to low- and middleincome New Yorkers as well as retail space, a hotel, parking, and two acres of open space. The first phase is also expected to

generate 1,800 permanent jobs and 4,600 construction-related jobs. In May 2011, following a successful Request for Qualifications, NYCEDC issued a Request for Proposals for a private sector development partner for this first phase. Also on the project, the Federal Highway Administration and New York State Department of Transportation gave their authorization for the City to proceed with the public review process for new access ramps for the Van Wyck Expressway that are to be built in connection with future phases of the project a major milestone. Construction on critical off-site infrastructure relating to the project, including a new sanitary and water main, is expected to commence in the fall of 2011.

Rendering of Willets Point


Hunters Point SouthThe Citys development of this largely vacant, 30-acre site along the East River reached significant milestones over the last year. In February 2011, the City announced the selection of a development team led by The Phipps Houses, Related Companies, and Monadnock Construction to build the first phase of the project, which will include 900 units of housing, five acres of open space, and 20,000-square-feet of retail space. The following month, NYCEDC commenced construction on off-site infrastructure and roadwork servicing the site, with groundbreaking on the projects waterfront park expected in the coming months. Construction of a new public school to be built by the New York School Construction Authority is also underway at the site. Groundbreaking on the first development phase is set for 2012 with completion anticipated in 2014. Upon final build-out, Hunters Point South will include 5,000 units of housing, at least 60% of which are to be affordable to middle-income New Yorkers, as well as 100,000-square feet of ancillary retail, and a state-of-the-art 11-acre waterfront park. All told, the project, which is to be the largest affordable housing complex built in New York since the 1970s, is expected to generate $2 billion in private investment and to create more than 4,600 jobs. create 900 new residential rental units, create thousands of square-feet of retail space, and generate more than 1,100 construction jobs and 150 permanent jobs. Construction of the project is set to commence in 2011.Hunters Point South

Homeport at the New Stapleton WaterfrontIn Staten Island, NYCEDC is working to transform the former U.S. Navy Homeport at the New Stapleton Waterfront into a new, mixed-use residential community. During 2011, the City agencies that previously had been located at the Homeport site were re-located ahead of schedule. Going forward, the projects developer, Ironstate Development Company, will make an investment of $150 million in the project, which will be matched by a contribution of $33 million in City Capital for infrastructure improvements at the site. Upon completion, the development will re-connect the Stapleton community to the waterfront,

North and West Shore StudyIn the summer of 2011, NYCEDC released a study focused on Staten Islands West Shore. A similar study of Staten Islands North Shore is expected to be released in the coming months. Based on extensive public outreach, and building upon past and current planning efforts, these studies outline a twenty year strategy that will help create quality jobs for Staten Island residents, update transportation infrastructure, preserve and link public open spaces, and improve community services. The studies findings are intended to guide decision-making on future growth and development in these neighborhoods for years to come.

35

Rendering of New Stapleton Waterfront


Seward Park Extension Urban Renewal AreaIn January 2011, after nearly 45 years of unsuccessful attempts, the local Community Board adopted a consensus set of guidelines for the Seward Park Extension Urban Renewal Area. This site encompasses 10 City-owned properties totaling 6.5 acres on the Lower East Side the largest, underdeveloped set of contiguous parcels of City-owned land south of 96th street in Manhattan. Going forward, the community and NYCEDC, along with a number of other City agencies, will use these community-generated guidelines to develop a framework for a mixed-use plan for this site. The project is expected to move into the environmental review process in the fall of 2011.

Lower ManhattanIn the ten years since Lower Manhattan was devastated by the terrible tragedy of September 11, the area has experienced an incredible resurgence. From the rapidly rising 1 World Trade Center, to the boom in residential development, to the growing and diverse roster of businesses in the area, Lower Manhattan has truly been reborn. Under Mayor Bloombergs leadership, NYCEDC has worked to make Lower Manhattan an attractive and dynamic destination for residents and businesses alike. NYCEDCs efforts have included: facilitating new development through assistance provided by tax-exempt Liberty Bonds; connecting Lower Manhattan to its waterfront from the Lower East Side to the South Street Seaport to the Battery Maritime Building; and creating plans for redevelopment projects at the Battery Maritime Building and elsewhere.

Battery Maritime Building

37

East River Esplanade South

- East River Waterfront Esplanade In early 2011, NYCEDC completed work on the first section of the new East River Waterfront Esplanade. This pilot section, which runs from Maiden Lane to Wall Street, includes a renovated pathway along the River, as well as new public space, benches and plantings. The plan for the entire two-mile long esplanade, which will ultimately stretch from the Battery Maritime Building to Montgomery Street, is the culmination of a nine year design and planning process that included significant community input. Subsequent phases, which will open on a rolling basis over the next few years, will build upon the work in the pilot section. They will also provide recreation facilities, community and commercial pavilions, new open space, places for boats to dock, as well as maritime education and caf spaces. The next portion of the project expected to open is Pier 15, a new two-level public pier that includes two active pavilions and boat docking.

Coney IslandIn 2003, after years of disinvestment in Coney Island and the surrounding neighborhoods, Mayor Bloomberg, the City Council, and the Brooklyn Borough President formed the Coney Island Development Corporation (CIDC). Over the following eight years, CIDC has spearheaded a comprehensive planning process and economic development strategy aimed at revitalizing Coney Islands amusement core, as well as the surrounding areas. Since the passage of the Coney Island Comprehensive Rezoning Plan in 2009 by the New York City Council, the City has achieved a number of significant milestones, including the opening of Coney Islands first new amusement parks in over fifty years. Over the span of the next three decades, the Citys investments in Coney Island are expected to create 25,000 construction jobs and 6,000 permanent jobs, while simultaneously generating $14 billion dollars in economic activity.

Scream Zone, Coney Island

39

- The Amusement Core During its inaugural summer in 2010, Luna Park, Coney Islands first new amusement park in five decades, hosted a recordbreaking 450,000 visitors. Building upon this momentum, NYCEDC joined Mayor Bloomberg and Central Amusement International (CAI) in April 2011 to open the Scream Zone the areas second new amusement park. This amusement park supplements Luna Parks nineteen rides with additional entertainment, including Coney Islands first major roller coaster since the Cyclone opened in 1927. CAI has not only invested $30 million to open and operate both parks, it is working with the Citys hiring program, HireNYC, to fill more than 400 positions with local New Yorkers over the course of the 2010 and 2011 summer seasons. In 2011, NYCEDC also completed design work on Steeplechase Plaza. This new gateway

for Coneys entertainment district will contain retail and public space and house the historic B&B Carousel. Construction is expected to commence on Steeplechase Plaza in the fall of 2011. - Infrastructure Improvements Over the next six years, the City is to invest $150 million in critical infrastructure upgrades for the Coney Island neighborhood. In 2011, NYCEDC completed an Amended Drainage Plan as part of these efforts, with design work for this infrastructure now underway. These improvements will lay the groundwork for new retail, as well as new affordable housing options such as the Department of Housing Preservation and Developments (HPD) Coney Island Commons project, which is also to include South Brooklyns first YMCA. HPD expects to break ground on this site in the fall of 2011.

Luna Park Caf


NEIGHBORHOOD DEVELOPMENTS AND AMENITIESLoews TheaterIn the past year, NYCEDC, along with Borough President Marty Markowitz, continued to make progress on the revitalization of the Loews Kings Theater in Flatbush. This historic theater, initially constructed in 1929, closed its doors in the 1970s and has remained vacant ever since. In 2009, NYCEDC selected ACE Theatrical Group to reactivate the 89,000-square-foot space as a performance venue, which is expected to generate approximately

510 construction jobs and 50 permanent jobs and bring this jewel back to its original luster. Loews Kings Theater is currently undergoing preparatory restoration work and is scheduled to reopen in 2014.

Food Retail Expansion to Support HealthIn 2011, NYCEDC, working with a number of partners in City government including City Council Speaker Christine Quinn, expanded the Citys successful Food Retail Expansion to Support Health (FRESH) Program an initiative designed to increase access to healthy food options in underserved

Rendering of Loews Theater

EMPLOYEE SPOTLIGHT

Clare NewmanVice President, Transaction Services

THE PRODUCERWhile working for Teach for America in Texas, Clare Newman developed her interest in urban planning driving the endless straight highways dotted with strip malls. After leaving teaching, Clare worked for an architecture firm before attending graduate school to study her newfound passion of urban planning. Today, as Vice President of Real Estate Transaction Services at NYCEDC, Clare guides site-specific development projects from the planning stages to the Request for Proposal phase. Throughout this process, she is tasked with negotiating and working with everyone from developers to those who will ultimately use the project the public in order to prepare a property for lease or sale. One of Clares signature projects is the restoration of the historic Loews Kings Theater, which opened in 1929 as one of five Loews wonder theaters in the region.

Located in Central Brooklyn, the building was developed as an architectural treasure modeled after the Palace of Versailles and the Paris Opera House, and featured ornate detailing in plaster and woodwork throughout the interior. The Theater holds 3,600 seats and was originally designed to show movies, vaudeville acts, and other live performances. Through the 1960s, it remained an economic engine, a cultural icon, and a gathering place for the neighborhood. These local connections to the theater are precisely why Clare enjoys working on the Loews Theater. Everyone has a personal relationship with the theater its where they had their high school graduation, or where Marty Markowitz had his first kiss on the balcony. Despite this, due to an industry shift towards the multiplex model, the theater began to fade in the 1970s. Eventually, in the latter part of the decade, the theater shuttered and abandoned, leaving the City to take ownership. Over the years, the

City made efforts for redevelopment, releasing a Request for Expressions of Interest as early as 1990. In the past five years, however, Clare and NYCEDC worked to overcome the challenges that prevented an earlier restoration. Brooklyn Borough President Marty Markowitz has been instrumental in this process, and has been a strong advocate of the project in addition to committing capital dollars that make it economically feasible. In February 2009, NYCEDC signed a contract with Arts Center Enterprises Brooklyn, LLC a subsidiary of ACE Theatrical, LLC to construct and operate the theater. The project will expand the theater most importantly the stage house to allow for modern performances and bring good jobs, entertainment, and economic activity to Flatbush Avenue, while at the same time preserving a cultural landmark.

BOGOPA SERVICE CORP. | business spotlightBOGOPA FOUNDER FRANCIS AN was born in Korea, but it was his childhood in South America that shaped his culinary preferences. In Argentina he immersed himself in local Latin American culture and cuisine. After immigrating to Queens, An saw a need to provide fellow immigrant communities in his neighborhood with familiar foods from home, which were at times overlooked by conventional grocery stores. So in 1988 he founded his first Food Bazaar supermarket in Queens LeFrak City, supplying the traditional ingredients and flavors that he remembered from his time in South America. In 1999, as his brand of supermarkets spread from neighborhoods in Queens to Brooklyn and the Bronx, An decided to form the Bogopa Service Corporation, which now operates supermarkets across the Tri-State area. Even as their business expanded, Bogopa has remained committed to serving the specific needs of its client base, offering a diverse selection of products such as Peruvian papa seca, Guatemalan yellow plantains, Mexican huitlacoche, and 8-10 different yam varieties. As part of their commitment to healthy food options, At a recent National Grocers Association conference, Bogopa learned about the Food Retail Expansion to Support Health (FRESH) Program, which was launched in 2009 as Throughout its history, Bogopa has also focused on providing high-quality, affordable food to communities that are underserved by mainstream retailers. These food deserts provide limited or no access to nutritious, fresh foods a problem that can ultimately lead to diabetes, obesity and other health problems. Shon explained that these neighborhoods are many times the first stops for immigrants into the United StatesGiven that the founding family and many of the employees are immigrants themselves, it makes sense to be able to offer fresh food and be a great place to shop in those neighborhoods. Bogopa purchases fresh fruit, vegetables, and fish daily from the Hunts Point Produce Market in the Bronx. Weve gotten a very positive response from our customers we certainly try our best to offer all the different varieties to feed their families, said Justin Shon, Bogopas Director of Corporate Affairs and Administration. The incentives provided through the FRESH program cleared the way for Bogopa to upgrade their stores with an additional 36,000-square-feet among six renovated stores three in Brooklyn, two in Queens, and one in the Bronx. In the process, Bogopas workforce at these six supermarkets will increase by more than 15% from 449 to 531 employees and private investment is projected to be more than $8 million. This expansion also allows Bogopa to replace older equipment and expand its perishable sections, in particular its fruit, vegetable, meat, and seafood areas. These new and expanded grocery stores will give additional customers the opportunity to access Bogopas selection of diverse, healthy, and affordable food. the result of a joint study by NYCEDC, the Department of Health, and the Department of City Planning, and promotes the growth and retention of neighborhood grocery stores in underserved communities. A partnership seemed an easy fit, said Shon.

43

communities. This program provides financial and zoning benefits to store operators, as well as developers seeking to construct new retail space or renovate existing stores. The programs first completed project, a Western Beef store, is to open its doors in the Bronx in the summer of 2011. Western Beef received financial benefits from the City worth approximately $5.6 million in 2010 allowing the company to replace a smaller grocery store, adding 10,000-square-feet of grocery space that is to include an on-site bakery and full-service deli. The project is expected to create nearly 50 new jobs in the Bronx. In total, approved FRESH projects are expected to create or expand more than 300,000-square-feet of grocery store space and create or retain more than 660 permanent jobs at facilities throughout the City.

BAM Cultural DistrictOver the past year, NYCEDC worked closely with Brooklyn Borough President Marty Markowitz, the New York City Department of Cultural Affairs, and the New York City Department of Housing Preservation and Development to support and expand the so-called BAM Cultural District. For example, in June 2011, NYCEDC broke ground on a new permanent home for Theater for a New Audience, which is to house a 3-level 299-seat theater, a rehearsal room, a public lobby, and various supporting spaces. When completed, the project will provide a state-of-the-art venue for this acclaimed theater companys interpretations of Shakespeare and other classical works of drama. The project will also create 175 construction jobs and support the theaters 20 full-time and 100 seasonal employees. The new Theater for a New Audience is expected to open in the spring of 2013.

Breaking Ground at Theater for a New Audience


TRANSPORTATIONJackson Avenue StreetscapingIn the fall of 2010, NYCEDC completed construction of improvements to this central corridor in the Long Island City business district. Jackson Avenues transformation into an attractive boulevard with a new median, landscaping, new streetlights, and pedestrian-friendly pocket parks is expected to encourage additional commercial development throughout the surrounding community.

Water SiphonIn the past year, NYCEDC worked closely with the New York City Department of Environmental Protection to commence construction of a new water siphon to replace existing infrastructure located beneath Upper New York Bay. NYCEDCs efforts are a necessary precondition for a larger dredging project being undertaken by the Port Authority of New York and New Jersey (PANYNJ) and the United States Army Corps of Engineers to deepen the channel that brings ships into the New York Harbor. Without this critical project, the larger ships that will soon traverse the expanded Panama Canal will not be able to clear the Verrazano Bridge, thereby limiting access to our ports and giving an enormous advantage to other East Coast ports in the on-going competition for the 270,000 jobs and nearly $36 billion in economic activity for which our ports are responsible. Completion of the new water siphon is anticipated for 2014.

Brooklyn Queens Expressway StudyIn April 2011, NYCEDC and the Department of Transportation released the Brooklyn Queens Expressway (BQE) Enhancement Study. This comprehensive blueprint for development within Cobble Hill, Carroll Gardens, and Columbia Street in Brooklyn Heights was based on extensive community outreach, including a number of public workshops. Moving forward, the BQE Study will guide future development decisions and help to enhance the neighborhoods adjacent to the Expressway.

Jackson Avenue Streetscaping

45

Appendix

Board of Directors Financials 2002-2011 Map of Accomplishments

The Highline

BOARD OF DIRECTORSTony Barsamian Rev. A.R. Bernard, Sr. Sharon Y. Bowen William Candelaria Angela A. Chao Marlene Cintron Nicholas Dmytryszyn Joseph I. Douek Alan B. Friedberg Victor Ganzi Alaina Gilligo James McSpiritt Melva Miller Mario J. Palumbo, Jr. Jeffrey Pash Shaifali Puri Mark E. Russo Carlo A. Scissura Robert K. Steel Robert J. Strang George Twill Rev. Reginald Williams Kathryn S. Wylde Alfred D. Youngwood

APPENDIX | 49

New York City Economic Development Corporation(a component unit of The City of New York)

BALANCE SHEETS

2010 ASSETS Current assets: Cash and cash equivalents Investments Current portion of loans receivable and mortgage notes receivable Accrued interest receivable from loans Due from the City, including $152,905,086 under contracts with the City Tenants receivable, net of allowance for uncollectible amounts of $11,564,075 Prepaid expenses Other receivables Land deposits in escrow Total current assets Noncurrent assets: Restricted cash and cash equivalents Restricted investments Loans and mortgage notes receivable, less current portion (less allowance for loan losses of $5,972,226) Capital assets, net Land held for development, at cost Other assets Total noncurrent assets Total assets

$

89,131,550 31,767,672 1,051,377 3,004,718 167,336,041 21,033,958 945,806 16,973,721 7,910,000 339,144,843

79,507,818 30,014,378 38,322,532 3,957,726 108,443,118 87,000 260,332,572 599,477,415

$

50 | APPENDIX


BALANCE SHEETS

2010 LIABILITIES AND NET ASSETS Current liabilities: Accounts payable and accrued expenses, including $107,318,346 under contracts with The City Deposits received on pending sales of real estate Due to the City: Real estate obligations and other Deferred revenues Other liabilities Total current liabilities Noncurrent liabilities: Tenant security and escrow deposits payable Deferred interest income Obligation for other post-employment benefits Due to the City: Real estate obligations and other Deferred revenue, including deferred grant revenue of $41,259,632 under contracts with The City Retainage payable Other Total noncurrent liabilities Total liabilities Net assets: Restricted Unrestricted Invested in capital assets Total net assets Total liabilities and net assets

$

129,711,651 6,689,100 8,453,863 10,373,185 260,560 155,488,359

8,898,629 240,000 19,017,744 105,345,500 72,279,434 18,581,013 88,356 224,450,676 379,939,035

$

106,847,140 108,733,514 3,957,726 219,538,380 599,477,415

APPENDIX | 51


STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS

2010 OPERATING REVENUES Grants Property rentals Power sales Fee income Other income Real estate sales, net Total operating revenues $ 620,371,208 96,390,435 53,275,525 16,653,405 40,512,311 1,396,041 828,598,925

OPERATING EXPENSES Project costs Program costs Property rentals and related operating expenses Utility expenses Personnel services Office rent Contract and other expenses to The City Other general expenses Total operating expenses OPERATING INCOME

44,147,228 470,697,469 34,663,250 52,321,429 47,459,076 7,728,592 142,737,190 8,618,789 808,373,023 20,225,902

NONOPERATING REVENUES Income from Investments Total nonoperating revenues

962,587 962,587

CHANGE IN NET ASSETS

21,188,489

TOTAL NET ASSETS, beginning of year TOTAL NET ASSETS, end of year

$

198,349,891 219,538,380

52 | APPENDIX


STATEMENTS OF CASH FLOWS

2010 CASH FLOWS FROM OPERATING ACTIVITIES Real estate sales Property rentals Power sales Grants from The City Fee income Other income Project costs Program costs Property rentals and related operating expenses Utility expenses Personnel services Office rent Contract and other expenses Other general and administrative expenses Repayments of loans and mortgage receivable Issuance of loans and mortgage receivable Tenant security and escrow deposits Other Net cash provided by operating activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Net cash used in capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Sale of investments Purchase of investments Deposits on land Interest inco

Documents

NYCEDC 2011 Year End Report