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Nyc bid conference
 

Nyc bid conference

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    Nyc bid conference Nyc bid conference Presentation Transcript

    • The Future of Retail
      Steven Spinola, President, REBNY
      New York City
      Business Improvement District
      Annual Conference
      July 13, 2010
      • Introduction
      • Emergence of BIDs
      • Outlook for Retail
      • Problems Ahead – More Politics than Economics
      • Conclusion
    • The Emergence of BIDs
      Fulton Street Mall in 1976 began BIDs.
      Focus on basic services—clean, safe streets.
    • The Emergence of BIDs
      Today - 64 BIDs generating $104 million, serving over 3,200 block fronts and 16,000 businesses.
      Employing over 530 sanitation workers and over 360 security workers.
      Essential to a vibrant retail corridor.
    • The Outlook for Retail
      Economic recovery is beginning.
      Momentum translating into retail sales growth.
      National retail sales were 9.24 percent higher in March, 9.77 percent higher in April, and 7.41 percent higher in May than a year ago. 
      NYC retail employment has added 3,200 jobs since the beginning of the year.
    • The Outlook for Retail
       
      6,800 more people employed in retail in NYC this May than last May.
      Demand for prime space remains healthy.
      Outside prime locations demand is weaker.
      Retail is highly localized.
    • The Outlook for Retail
      Average Ground Floor Asking Rents
      Selected Manhattan Corridors
      Spring 2010
       
      Madison Avenue (57-72) $960
      Third Avenue (60-72) $267
      Broadway (72-86) $291
      Broadway (Times Square) $1,400
      Fifth Avenue (49 – 59) $2,300
      Fifth Avenue (42-49) $425
       
      Major large leases: Aeropostale, Disney in Times Square;
      Uniqlo on Fifth Avenue
    • The Outlook for Retail
      The health of the consumers is key for retail.
      Recession impact on luxury goods sector.
      The efforts of the Madison Avenue BID.
    • The Outlook for Retail
      Impact on “Mom and Pop” retail.
      Shortage of working capital and lines of credit.
      Blame problems incorrectly on rising rent.
    • The Outlook for Retail
      Small retail stores success stories:
      Brentwood Pharmacy new lease on West 8th Street, joining its location on West 14th Street.
      Lamazou Cheese in Murray Hill opens its first restaurant, a block away from its current shop.
    • Problems Ahead – More Politics than Economics
      Unions use legislation to raise the pay and benefit scale of employees, not organizing and negotiation.
      BIDs and Prevailing Wages
      Mandating prevailing wages for sanitation and security.
      Reduce staff and cut services.
      Bill placed ideological goal above the mission of the BIDs and their benefits for the neighborhood and the city.
    • Retail Stores in Brooklyn
      Compared to Long Island
    • Retail Stores in the Bronx
      Compared to Long Island
    • Mandatory Paid Sick Leave
      20 or more employees: 9 paid sick days a year
      Less than 20 employees: 5 paid sick days.
      Higher costs on small businesses.
    • Commercial Rent Control
      Mandates arbitration for lease renewals.
      Arbitration only binding on landlord.
      Tenant can stay in the space at a 5 percent increase.
      Tenant: A right of first refusal.
    • Commercial Rent Control
      1969 NYT article with the headline “High Rents Close ‘Village’ Stores”.
    • Florence Meat Market – Still in business at the same location
    • A new fruit and vegetable market has opened on the same block.
      Francis Typewriter and Television and a second hand book dealer are no longer there - businesses a victim of a changing market.
    • Landmarking and Retail Stores
      Proliferation of historic districts.
      Expansions of the Upper East Side and SoHo.
      Lease negotiation in a landmarked property.
      Large national retailers want their trademark marketing.
      Reluctant to spend money for landmark process.
    • Landmarking and Retail Stores
      Small stores can’t pay for the approval process.
      Small boutique stores often don’t pay a high enough rent.
      Uniqueness and creativity of Boutiques are desired by residents.
    • Conclusions
      New York City can support more retail stores.
      Must lower operating costs and stop mandating wages and benefits.
      Strong businesses survive and thrive; weak ones don’t.
      BIDs create an environment that helps the strong businesses get stronger and gives the weak ones the best chance of success.
      BIDs are a vital element in the future of retail in NYC.