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Dear New Yorkers,
If you’ve ever wondered how government actors make decisions on economic development subsidy applications, this month’s Spotlight is for you!
We take a fresh look at how the market for office space has evolved since our last analysis a year ago. We find that the “doomsday” scenario we considered then does not, happily, appear to be materializing.
However, we still anticipate a long period of protracted pain and transition, especially in Class B and C office portfolios, where conversions to residential or new commercial uses are proceeding steadily but slowly. After explaining the City’s “Manhattan Commercial Revitalization Program” (M-CORE), we give you a peek into how our office made our decision on two M-CORE projects.
Springtime is budget season in New York. The recently-adopted State budget boosted the City’s debt capacity by $14 billion over two years, allowing us room to borrow to fund capital needs for schools, transportation, and housing. We took a deep dive into the debt limit, concluding that the increase is responsible … but identifying steps the City should take to keep it that way.
The State budget also increased funding to the City for services to asylum-seekers. One model I hope will get more attention is now underway in Buffalo. After the Adams Administration finally cancelled the $432 million contract with DocGo (which I rejected last fall), responsibility for over 500 families has been transferred to the Jewish Family Services (JFS) of Western NY, who will provide supportive services, housing and case management, with the goal of helping families transition to self-sufficiency in 9 to 12 months (far more realistic than the 30 to 60 days that the City is enforcing here, as our recent investigation finds). The JFS model works: let’s do more of it in New York City and around the state.
Now, the budget focus turns to New York City. We’ll release our analysis of the Mayor’s $111.6 billion Executive Budget later this month, as the City Council debates it, and moves toward negotiations with the Mayor and adoption next month.
Let me know how you’d have voted on the M-CORE projects, if you were watching the numbers!
Brad Lander
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