CITY RECAPTURES $120 MILLION FROM EDC

   Comptroller Liu's Audit Had Uncovered Revenues Payable to City Treasury.

    New York City Comptroller John C. Liu announced that the City will now recapture $120 million from the New York City Economic Development Corporation (EDC).  The funds represent revenues collected by the EDC on behalf of the City from the 42nd Street Project (aka Times Square redevelopment).  The EDC has in past years inappropriately retained the money instead of passing it through to the City treasury, as revealed in an audit of the EDC completed by Comptroller Liu in April.

   The $120 million of new revenue was first identified in the Fiscal Year 2011 Adopted Budget (http://www.nyc.gov/html/omb/downloads/pdf/adopt10_rfpd.pdf , page 28). The revenue will be collected over four years beginning with $20 million this year and increasing to $40 million in Fiscal Year 2014. Its is expected that the annual revenue would continue indefinitely and at an increasing rate beyond 2014.

   Comptroller Liu stated, “This is good news for the people in a time of continuing economic uncertainty.  It's $120 million that can be put to good use in schools, hospitals, day cares, and senior centers.  Times are still tough and we just cannot afford to allow the EDC or any entity to keep hoarding so much money that belongs to the City's taxpayers.”