Common Ground – NYC
Scott Baker, President: SSBAKER305@YAHOO.COM
http://www.commongroundnyc.org/

East Side Esplanade Gap ...
Close the East Side Esplanade Gap
Esplanade Gap Zones

9/16
NYCityMap
East Midtown Close the Gap Calculations
Years to pay off Esplanade
Cost of Esplanade $
Amount to be paid in LVT annually f...
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Land value tax gap closure proposal

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Proposal to pay for $200m 1-mile expansion of East Side NYC Greenway/Esplanade by United Nations through creation of a Special Improvement District with 10-year tax assessment.

Published in: Economy & Finance
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  • @POSHC2C Thanks Linda. Unfortunately, Ellen Imbimbo, Chair of the Waterfront Committee, reminded me jsut yesterday, that the U.N. has still not agreed to their share of payment to be used to close the Gap, meaning the land swap deal is still on hold (after more than a decade!).
    We will need community leaders to step forward to make this alternate plan a reality.
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  • the safety of all is at risk if not remedied, this is an elegant plan and deserves full consensus
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  • An exceptional elegant plan, at last, to favor all actors, particularly the challenged pedestrians, cyclists, children, seniors, developers and taxpayers, notwithstanding a satisfied galvanization of community boards, NYC Council, and the optimistic Mayor.
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Transcript of "Land value tax gap closure proposal"

  1. 1. Common Ground – NYC Scott Baker, President: SSBAKER305@YAHOO.COM http://www.commongroundnyc.org/ East Side Esplanade Gap Closure Proposal 11/07/2013 For a relatively small cost, East Midtown could have an enjoyable completed esplanade - a vital and safe passageway for bikers, park-goers, and other New Yorkers. This proposal does not depend on the UNDC, state or city funding. Our proposal would raise $200 million over 10 years, to fund the construction of a new Esplanade (aka Greenway) to run from the current north end of Glick Park on the East River at 38th street, to the south end of the Esplanade at approximately 61rst Street. It takes into account current cost estimates to complete this “last mile.” A proven approach to collecting money for infrastructure projects is one that also fosters growth - the Land Value Tax. This is a tax on land, not on improvements. The tax incentivizes landowners to build on underused land, or to sell to someone who can. Developers are rewarded for improving their sites by leaving those improvements untaxed. A new Esplanade would directly improve the neighborhood from 38th – 61st, east of Second Avenue, so this area was used when calculating the Land Value Tax to be collected. Different borders would yield different results. Examples abound: - Collecting $2B in taxes from the Hudson Yards Project is funding the #7 train line extension, (http://www.crainsnewyork.com/article/20131014/REAL_ESTATE/131019954) - A recent neighborhood tax proposal would have paid for maintaining the west side esplanade, http://www.dnainfo.com/new-york/20110812/chelsea-hells-kitchen/hudson-river-park-tax-plan-could-affect-more-properties: The plan — which has to be approved by the City Council before it can go forward —…would have assessed a small fee of about five cents per square foot on property owners in order to raise up to $10 million a year. There is ample evidence for substantial ROI in similar projects. This story on the booming success of the Highline, http://www.nytimes.com/2011/06/06/nyregion/with-next-phase-ready-area-around-high-line-is-flourishing.html showed: …the High Line as a public park revitalized a swath of the city and generated $2 billion in private investment surrounding the park….Amanda Burden, the city’s planning director, emphasized the boost to property values, saying that in one building that abuts the lower section of the High Line, the price of apartments had doubled since the park opened, to about $2,000 a square foot. At the Hudson Yards area, The NY Times (http://www.nytimes.com/2012/04/04/realestate/commercial/developmentflourishes-in-manhattans-hudson-yards-district.html) reports: …that more than 5,000 apartments have been built and more than $5 billion in private development has been invested in the area between 28th and 43rd Streets west of 8th Avenue since it was rezoned in 2005. Clearly, property owners would benefit far more in the long run than they would pay out in the short run. Those who benefit from improvements should pay for them. Currently, the average tax paid on both building and land values is 4.69% for this area. The proposal seeks to increase the total tax by .32% to 5.01% (a 14.6% increase) but since the tax would be on land only, the land value tax would go up by .93% and the building tax by 0%. This would add $4.20/square foot to the total 4,765,802 square feet for all 38 taxable blocks in the designated area. We used New York City’s GIS mapping system (http://gis.nyc.gov/doitt/nycitymap/) and Common Ground-NYC’s proprietary database, with data from NYC’s Department of Finance, to calculate total square footage, total taxable building and land values, and the current tax bill and percentages paid. Tax Land Not People  
  2. 2. Close the East Side Esplanade Gap Esplanade Gap Zones 9/16 NYCityMap
  3. 3. East Midtown Close the Gap Calculations Years to pay off Esplanade Cost of Esplanade $ Amount to be paid in LVT annually for 10 years $ Additional Cost per square foot of Land per year $ Proposed Increased % Current Avg. Taxes taxes 10 4.69% + 0.32% = 200,000,000 20,000,000 4.20 0.93% { New Total taxes 5.01% increase on land value taxes alone All blocks from 38-61, East of First Avenue Block Comments count Block # United Nations 1 1354 Bridgemarket 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1361 1362 1363 1364 1365 1366 1367 1368 1369 1370 1371 1372 1454 1455 1474 Totals Block Square footage (not including building footage) 659,375 127,570 70,650 127,334 137,938 123,078 130,623 123,107 123,100 123,157 123,103 70,863 68,550 123,109 123,143 16,067 2,270,767 Total taxable Building Total Taxable Land Value{BV} Value {LV} $ 17,072,329 $ 19,057,990 $ 124,134,187 $ 100,745,715 $ 63,980,829 $ 52,226,172 $ 98,278,000 $ 50,910,757 $ 133,405,000 $ 61,266,170 $ 176,524,422 $ 81,985,023 $ 120,569,619 $ 52,108,725 $ 125,680,000 $ 50,136,056 $ 138,922,202 $ 54,323,223 $ 130,304,024 $ 67,329,452 $ 186,947,662 $ 73,110,707 $ 128,100,000 $ 25,693,513 $ 93,180,000 $ 137,008,746 $ 10,730,119 $ 15,896,430 $ 105,508,178 $ 42,849,354 $ 2,300,000 $ 7,000,000 $ 1,655,636,571 $ 891,648,033 Current % paid in taxes 0.77% 3.18% 3.49% 5.03% 5.37% 5.31% 5.43% 5.76% 5.43% 4.98% 5.23% 5.26% 2.47% 1.49% 5.33% 4.64% 4.68% Current Tax Bill $ 279,522 $ 7,146,419 $ 4,049,880 $ 7,509,871 $ 10,455,326 $ 13,722,925 $ 9,373,410 $ 10,130,901 $ 10,489,908 $ 9,833,367 $ 13,597,452 $ 8,086,803 $ 5,680,060 $ 396,463 $ 7,905,502 $ 431,557 $ 119,089,366 All blocks from 38-61, Between First & Second Avenues 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Grand totals 38 944 945 1333 1334 1335 1336 1337 1338 1339 1340 1341 1342 1343 1344 1345 1346 1347 1348 1349 1350 1351 1435 Totals 122,890 47,696 111,745 11,652 95,428 130,501 129,154 130,556 65,337 124,901 132,909 130,487 130,638 130,425 130,351 123,064 130,355 130,540 130,295 120,443 120,506 115,162 2,495,035 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 157,598,093 106,638,500 148,895,000 138,510,000 47,590,768 91,154,408 78,679,353 157,134,173 53,557,220 164,364,210 194,121,363 91,759,855 98,921,330 87,191,606 67,623,742 113,034,582 81,251,062 161,776,000 146,975,018 128,867,000 85,419,000 72,570,525 2,473,632,808 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 63,600,434 37,893,163 38,248,276 53,652,056 22,445,374 31,409,182 75,622,399 60,123,699 35,992,966 73,177,581 68,377,635 62,246,654 80,958,880 91,166,188 77,321,727 58,360,953 49,551,410 65,049,900 62,863,035 49,724,525 54,332,243 38,769,449 1,250,887,729 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 11,406,946 6,156,039 10,373,213 9,444,904 3,388,985 6,513,181 6,614,959 11,979,156 4,132,641 13,133,377 13,106,503 6,181,472 5,552,599 5,679,043 4,441,825 7,640,855 5,483,622 12,260,219 10,989,634 9,731,679 6,042,315 4,602,474 174,855,641 4,765,802 $ 4,129,269,379 $ 2,142,535,762 $ 293,945,007 Avg. % 5.16% 4.26% 5.54% 4.92% 4.84% 5.31% 4.29% 5.51% 4.61% 5.53% 4.99% 4.01% 3.09% 3.18% 3.06% 4.46% 4.19% 5.41% 5.24% 5.45% 4.32% 4.13% 4.69% 4.69%

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