MAYOR ADAMS’ STATEMENT ON CITY COUNCIL COMMITTEES’ VOTES TO ADVANCE ‘CITY OF YES FOR ECONOMIC OPPORTUNITY’ PROPOSAL TO SUPPORT SMALL BUSINESS GROWTH, BOOST ECONOMY

 

New York City Mayor Eric Adams today released the following statement after the New York City Council Subcommittee on Zoning and Franchises and New York City Council Committee on Land Use both voted to approve Mayor Adams’ “City of Yes for Economic Opportunity” proposal to support small businesses and entrepreneurs, create thriving commercial corridors, and bolster New York City’s economic recovery:

“When we came into office two years ago, we had a mission: protect public safety, rebuild the economy, and make this city more livable for working-class New Yorkers. Today’s votes advancing the ‘City of Yes for Economic Opportunity’ out of the City Council’s Zoning and Land Use Committees are important steps towards achieving these goals. This historic initiative will remove outdated limitations on businesses and ensure that local retail streets and commercial centers across the city remain lively places that sustain our neighborhoods. I want to thank Speaker Adams and Chairs Riley and Salamanca for their dedication and collaborative effort to make thoughtful modifications that balance public input while maintaining the purpose and intent of the proposal. We urge the full City Council to adopt these regulations in the coming weeks.”

EDITOR'S NOTE:

This is not the complete package proposed by the City Planning Commission, and must be approved by a majority of the City Council members when they vote Thursday at the scheduled full City Council Stated Meeting. 

New Council Economic & Tax Revenue Forecast Projects $1.1 Billion More in Revenue than Mayor’s Office of Management and Budget for Fiscal Years 2024 and 2025

 

Projections remain consistent in outpacing OMB revenue estimates and continued forecast of moderate tax and job growth, providing opportunity to restore cuts to save essential services

The New York City Council released its May 2024 Economic and Tax Revenue Forecast with consistent revenue projections that continue to outpace those of the Mayor’s Office of Management and Budget (OMB) by $1.1 billion for Fiscal Years 2024 and 2025. This difference remains even after OMB adjusted its revenues by $2.3 billion for FY24 and FY25 in April’s Executive Budget. The $1.1 billion more in expected revenue is in addition to any other available funds for the city budget, like the $2.25 billion in potential underspending over the current and next fiscal year that the Council identified in its Preliminary Budget Response. The updated forecast is overall virtually unchanged from the Council’s previous version and provides clarity that the City can restore cuts to protect essential services and invest in the needs of New Yorkers. Its release follows weeks of Council hearings on the Executive Budget that conclude on Wednesday, May 22.

The Council’s full report is available here.

“The Council’s tax and revenue projections remain consistent, and despite OMB’s adjustment in the Executive Plan, we’re still expecting an estimated $1.1 billion more in revenue that can be used to restore cuts and invest in New Yorkers,” said Speaker Adrienne Adams and Finance Committee Chair Justin Brannan. “Our city economy is resilient, and we have the resources to protect essential services that support working families and keep New Yorkers safe and healthy. New Yorkers are counting on us to get this right. Early childhood education, our public-school students, and CUNY must be priorities for us to build a stronger city. Cultural institutions, libraries, and parks are the foundation of our neighborhoods. And housing, mental health care, and programs that reduce recidivism and advance community safety are how we make New York City healthier and safer. As the budget process continues, we remain focused on securing investments in these areas as priorities for our city in the budget and look forward to working with the Administration to achieve the right outcomes.”

Similar to the beginning of the year, the national economy remains resilient despite headwinds from above-target inflation and elevated interest rates, which are exerting pressure on economic growth. Business activity, consumer sentiment, and labor markets all remain strong, but are showing signs of deceleration. Despite recent stubborn inflation, the Council projects that the Consumer Price Index (CPI) will still gradually return to a declining path, allowing the Federal Reserve to begin lowering policy rates by the end of the year. The recently released April CPI report supports this forecast, reflecting a slight moderation from Q1 inflation readings.

The City’s economy is following a similar pattern, remaining robust with signs of cooling down due to softening of total employment growth. Strong job growth in certain sectors but weakness in others has resulted in an uneven recovery and slowing average wage growth, with year-over-year job creation as of March concentrated in the health care and social services sectors.  Job growth in other sectors is expected to return in 2025 as inflation expectations and interest rates are anticipated to be lowered.

New York City’s real estate market continues to face challenges, with slightly higher office vacancies compared to the Council’s February estimate. Also, home sales are expected to be slightly stronger than the previous forecast but remain below pre-COVID levels.

The Council’s average projected annual tax revenue growth rate through the plan years is 3.4 percent, which remains above OMB’s projections. However, it still represents a slowdown in collections compared to the 5.5 percent growth experienced by the City from FY10 through FY19.

The three main changes in the Council tax forecast, compared to its February projections, are revisions in personal income tax, business taxes and transfer taxes. The Council revised its personal income tax projections to account for uncertainty around collections. The City saw greater-than-anticipated refunds in April, which is explained partly by the State’s faster processing of refunds. Additionally, irregular collection patterns for the City’s relatively new pass-through entity tax (PTET) have made it more difficult to account for non-wage income collected. While the forecast accounts for this uncertainty, it also means there is a positive risk that collections can come in stronger than projected. Meanwhile, business tax revenues have outperformed expectations, though they are still expected to grow at a slower pace than the long run average throughout the forecast. Despite an anticipated drop in transfer taxes due to high mortgage rates, recent upward revisions in quarterly home sales indicate that the market is still weathering current conditions better than the Council expected.

The release of the Council’s forecast follows the projections of a city budget watchdog. The Independent Budget Office recently released its own analysis, projecting increased surpluses for Fiscal Years 2024 and 2025 and reduced fiscal pressures from diminished outyear gaps.

Ringleader and Company Insider Plead Guilty to Defrauding Biochemical Company and Diverting Products to China Using Falsified Export Documents

 

Through Company’s Prompt Disclosure of Misconduct and Extraordinary Cooperation, National Security Division Announces First Declination to Prosecute Company Under Enforcement Policy

The Justice Department announced that Pen Yu, also known as Ben Yu, 51, of Gibsonton, Florida, and Gregory Muñoz, 45, of Minneola, Florida, have each pleaded guilty to one count of wire fraud conspiracy for their roles in a scheme to fraudulently procure deeply discounted products from Massachusetts biochemical company Sigma-Aldrich Inc., doing business as MilliporeSigma, and export them to China using falsified export documents.

In addition, the Justice Department announced that it has declined the prosecution of MilliporeSigma after considering the factors set forth in the Department’s Principles of Federal Prosecution of Business Organizations and the National Security Division Enforcement Policy for Business Organizations (NSD Enforcement Policy). The NSD Enforcement Policy creates a presumption that companies that (1) voluntarily self-disclose to NSD potentially criminal violations arising out of or relating to the enforcement of export control or sanctions laws, (2) fully cooperate, and (3) timely and appropriately remediate will generally receive a non-prosecution agreement, unless aggravating factors are present. This is the first time that NSD has declined the prosecution of a company under the NSD Enforcement Policy.

“When a business uncovers criminal wrongdoing within its ranks, the company is far better off reporting the violation than waiting for the Justice Department to discover it,” said Deputy Attorney General Lisa Monaco. “That’s exactly what MilliporeSigma did in the first-ever corporate declination under our National Security Division’s voluntary self-disclosure program. Because of MilliporeSigma’s timely disclosure and exceptional cooperation, a rogue company insider and his accomplice pled guilty to fraudulently diverting millions of dollars worth of biochemicals to China, and the company will not be prosecuted. As national security and corporate crime increasingly intersect, companies that step up and own up under the Department’s voluntary self-disclosure programs can help themselves and our nation.”

“When MilliporeSigma found evidence that one of its employees was diverting biochemical products to an unauthorized purchaser in China, they did not sweep the misconduct under the rug. Instead, the company made the early decision to cooperate with the Justice Department, resulting in the convictions of responsible individuals,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s announcement reflects the value for companies like MilliporeSigma to quickly self-disclose potential criminal activity and reaffirms our commitment to work in partnership with the private sector to root out conduct that violates the law and jeopardizes our national security.”

“When company and university insiders abuse the trust that their institutions place in them, they will be held accountable,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Here, Millipore Sigma’s prompt disclosures led to the uncovering of this multimillion- dollar criminal enterprise, and enabled law enforcement to disrupt the scheme and stop further illegal exports to China. These disclosures led to the seizure of multiple illegal shipments to China and the conviction of two of the most culpable participants in the scheme. Millipore Sigma’s prompt and full cooperation was essential in obtaining this result.”

“Faking an affiliation with an academic research lab to obtain controlled biochemical materials, and then sending those materials to China, is not only wrong, but illegal,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Today’s announcement provides yet another fact pattern for universities to beware of — the misuse of academic institutions by outsiders who seek to obscure the actual customer of controlled items.”  

According to court documents, beginning in at least July 2016 and continuing through at least May 2023, Yu ordered biochemical products from MilliporeSigma, a subsidiary of multinational science and technology company Merck KGaA, Darmstadt, Germany, with help from Muñoz, a MilliporeSigma salesperson, by falsely representing that Yu was affiliated with a biology research lab at a large Florida university. This fictitious affiliation led MilliporeSigma to provide Yu over $4.9 million worth of discounts and other benefits, such as free overnight shipping, not available to the public. Yu gave Muñoz thousands of dollars in gift cards for facilitating these fraudulent discounted orders. When the products arrived at the university stockroom, a stockroom employee diverted the products to Yu, who repackaged them and shipped them to China. To avoid scrutiny, Yu made false statements about the value and contents of these shipments in export documents.

This scheme continued until MilliporeSigma compliance personnel identified certain orders as suspicious, prompting the company to retain outside counsel who voluntarily disclosed the misconduct to the Department of Justice’s National Security Division only a week later. MilliporeSigma made the disclosure well before its counsel had completed their investigation and understood the full nature and extent of the scheme. MilliporeSigma offered exceptional cooperation to the prosecution team, including by proactively identifying and producing documents to the Department that established probable cause to search residences and electronic devices of culpable individuals. MilliporeSigma’s cooperation allowed investigators to quickly identify the individuals responsible for the scheme, including Yu and Muñoz, and secure their felony guilty pleas. As a result of MilliporeSigma’s timely self-disclosure and extraordinary cooperation, MilliporeSigma will not be charged, despite the criminal wrongdoing committed by Muñoz, a MilliporeSigma employee.

The Defense Criminal Investigative Service; Department of Commerce, Bureau of Industry and Security; and Homeland Security Investigations are investigating the case.

Air Quality Health Advisory Issued for Lower Hudson Valley Region

 

In Effect for Wednesday, May 22, 2024

New York State Department of Environmental Conservation (DEC) Interim Commissioner Sean Mahar and State Department of Health (DOH) Commissioner Dr. James McDonald issued an Air Quality Health Advisory for the Lower Hudson Valley region for Wednesday, May 22.

 

The pollutant of concern is: Ozone

 

The advisory will be in effect 11 a.m. through 11 p.m. 

 

DEC and DOH issue Air Quality Health Advisories when DEC meteorologists predict levels of pollution, either ozone or fine particulate matter (PM2.5), are expected to exceed an Air Quality Index (AQI) value of 100. The AQI was created as an easy way to correlate levels of different pollutants to one scale, with a higher AQI value indicating a greater health concern. 

OZONE

Summer heat can lead to the formation of ground-level ozone, a major component of photochemical smog. Automobile exhaust and out-of-state emission sources are the primary sources of ground-level ozone and the most serious air pollution problems in the northeast. This surface pollutant should not be confused with the protective layer of ozone in the upper atmosphere.

 

Ozone is not a direct emission, and is produced indirectly when sunlight chemically reacts with nitrogen oxides (NOx) and volatile organic compounds (VOCs) from automobile exhaust and industrial emissions. High ozone is not as visible as PM2.5 because it is a colorless gas, but will produce hazy skies and reduce visibility in high concentrations.

 

People, especially those with cardiovascular disease and those who have respiratory disease (such as asthma), young children, those who exercise outdoors, and those involved in vigorous outdoor work should consider limiting strenuous outdoor physical activity when ozone levels are the highest (generally afternoon to early evening). When outdoor levels of ozone are elevated, going indoors will usually reduce exposure. Individuals experiencing symptoms such as shortness of breath, chest pain, or coughing should consider consulting their personal physician.

Ozone levels generally decrease at night and can be minimized during daylight hours by curtailment of automobile travel and the use of public transportation where available.

New Yorkers also are urged to take the following energy-saving and pollution-reducing steps:

• use mass transit or carpool instead of driving, as automobile emissions account for about 60 percent of pollution in our cities;
• conserve fuel and reduce exhaust emissions by combining necessary motor vehicle trips;
• turn off all lights and electrical appliances in unoccupied areas;
• use fans to circulate air. If air conditioning is necessary, set thermostats at 78 degrees;
• close the blinds and shades to limit heat build-up and to preserve cooled air;
• limit use of household appliances. If necessary, run the appliances at off-peak (after 7 p.m.) hours. These would include dishwashers, dryers, pool pumps and water heaters;
• set refrigerators and freezers at more efficient temperatures;
• purchase and install energy efficient lighting and appliances with the Energy Star label; and
• reduce or eliminate outdoor burning and attempt to minimize indoor sources of PM 2.5 such as smoking.

Additional information on ozone and PM 2.5 is available on DEC's website and on DOH's website (PM 2.5) / DOH's website (ozone). A new DEC fact sheet about the Air Quality Index is available on DEC’s website https://dec.ny.gov/environmental-protection/air-quality/air-quality-index-forecast-current-observations or by PDF download https://dec.ny.gov/sites/default/files/2024-05/aqiprint.pdf.

To stay up-to-date with announcements from DEC, sign up to receive Air Quality Alerts through DEC Delivers: DEC's Premier Email Service. A toll-free Air Quality Hotline (1-800-535-1345) was also established by DEC to keep New Yorkers informed of the latest air quality situation.

The Wednesday, May 22, Air Quality Health Advisory region consists of: Lower Hudson Valley, which includes Dutchess, Orange, Putnam, Ulster, and Sullivan counties.

NYS Office of the Comptroller DiNapoli Releases Annual IDA Report

 

IDA Projects Reached a Record High Value of $132 Billion in 2022, Received More Than $1 Billion in Net Tax Exemptions

New York's local Industrial Development Agencies (IDAs) reported 4,320 active projects with a record high total value of $132 billion in 2022, an increase of $5 billion (3.9%), from 2021, according to State Comptroller Thomas P. DiNapoli’s annual report.

“IDAs were created to help grow local economies, businesses and job markets,” DiNapoli said. “The tax breaks they provide businesses can impact local tax collections, however, and New Yorkers should be mindful about weighing the benefits these projects bring to their communities against their cost. My office reports the numbers on local IDAs to help increase their transparency and make them more accountable to taxpayers.”

While the number of active projects has remained relatively stable since 2012, reported project values have risen steadily. County IDAs were responsible for 61.8% of all active IDA projects in 2022, followed by towns (17.7%), cities (12.7%), New York City (7.2%), villages (0.5%) and city-town IDAs (0.2%).

DiNapoli’s report summarizes the most recent annual data, which is self-reported by IDAs through the Public Authorities Reporting Information System. The data is not independently verified by the State Comptroller’s Office. While most IDAs operate on a calendar-year basis, several, including the New York City IDA, do not.

DiNapoli found IDAs reported the following:

• The 4,320 active IDA projects would create an estimated 213,887 jobs during their lifespan, with a median salary of $42,000. Another 224,234 existing jobs would be retained, with a median salary of $45,430. In addition, the projects are estimated to create 36,607 temporary construction jobs.
• The number of net jobs gained (reflecting current jobs reported by projects minus initial jobs reported) was 204,147 as of 2022, an increase of 15.2% from 2021.
• Total tax exemptions for IDA projects in 2022 amounted to nearly $2 billion, up $63 million, or 3.3%, over 2021. Property tax exemptions represented $1.7 billion, or 87.5% of total tax exemptions.
• Almost $854 million was collected through payment in lieu of taxes (PILOT) agreements in 2022. Net tax exemptions (total tax exemptions minus PILOTs) totaled approximately $1.1 billion, an increase of 4.3% from 2021 and nearly double the $555 million in 2012.
• On a regional basis, net tax exemptions were much higher downstate, with IDAs in New York City, Long Island and Mid-Hudson regions together reflecting 57.6% of the total. Per capita, the New York City IDA provided the lowest net tax exemptions ($26.58 per person) in 2022. The Capital District had the highest ($99.44 per person).
• IDAs’ total revenues of $123 million in 2022 were down $9.3 million from 2021. Charges for services accounted for 53.8% of the reported revenues.
• Total IDA expenses in 2022 were $76 million, down $3.5 million from 2021 (4.4%). The New York City IDA reported the highest expenses ($5.97 million), followed by Genesee County ($4.07 million) and Erie County ($3.86 million). Regionally, IDAs in the Finger Lakes region collectively reported the highest expenses ($12.5 million) while those in the Mohawk Valley had the lowest ($3 million).
• IDAs reported 336 new projects with approval dates in 2021 or 2022, led regionally by the Finger Lakes (66 new projects), Western New York (50 new projects), and Mid-Hudson (47 new projects).
• The largest new IDA project in 2022 by project value ($1.4 billion) was Westchester County IDA’s Regeneron Phase II (aka LOOP Road) project. The project is scheduled to end in 2037 and is projected to create 700 permanent jobs.
• The number of clean energy projects increased 52.9% between 2021 and 2022, from 85 projects to 130 projects. Projects classified as clean energy saw the greatest percentage change in net tax exemptions per project, an increase of 57.7%.

DiNapoli’s office examines IDA costs and outcomes in several ways, including performing audits of the operations of individual IDAs, providing training to IDA officials on various topics, and encouraging improvements in IDA procedures and reporting.

Annual Report

Performance of Industrial Development Agencies in New York State

IDA Data by Region

Office of the New York State Comptroller - 2022 IDA Data by Region

Bronx Borough President Vanessa L. Gibson - Community Resources & Updates

 

Dear Neighbor,

We want to thank everyone who participated in this year`s Bronx Week festivities! Many of you joined us last year as we celebrated the 51st anniversary of Bronx Week, and each year, we set out to make it bigger and better than the last.

From our Bronx Week Press Conference launch at the new Chase Community Center to our Labor Leaders Breakfast, Bankers Breakfast, Silent Disco, Health Day, Veterans Appreciation Luncheon, Centenarian Celebration, BX Factor Competition, and our Grand Finale Concert, Food and Arts Festival, and Parade - we are showing the rest of the city why we are exceptional, and why our borough is the best place to live, work, visit, and raise your family. However, our team could not do this work without you and without our amazing sponsors!

We hope you will also join us on Thursday, May 23rd, for our CCNY Studio Award Ceremony at Bronx Borough Hall and our 2nd Annual Prom Dress Giveaway Event on Friday, May 24th, at 730 Concourse Village West. Additional information on these events can be found in this week`s newsletter.

Thank you for all of your support, and we look forward to seeing you as we celebrate Bronx Week 2025!

In partnership,

Bronx Borough President Vanessa L. Gibson

IN THE COMMUNITY

Thank you to everyone who came out for our Annual Bronx Week Centenarian Event recognizing our older adults (90+) for their contributions to our communities.

Their wisdom has guided us for over 90 years as a borough, and we are eternally grateful.

Congratulations to the winners of the first-ever BX Factor competition during Bronx Week!

The inaugural winner is Gomez Design Studio and the two runner-up businesses were Bronx Native and Green Canvas Productions.

In the Bronx, our small businesses are essential to our communities and our continued economic growth. Thank you to the Bronx Economic Development Corporation, the New York Yankees, Santander Bank, and all of our other community partners for their support of this important event.

Bronx Week 2024 was a hit! Thank you for joining us on this journey.

Congratulations to this year’s Bronx Week 2024 Walk of Fame honorees:

Andrea Navedo (Actress and Entertainer)

Ozzie Virgil, Sr. (Baseball Legend)

Amadeus (Music Producer)

Paloma Izquierdo-Hernandez (Urban Health Plan CEO)

What an incredible Sunday in The Bronx! We danced, sang, laughed, and celebrated together. A thank you to all of our sponsors and everyone who joined us for our Annual Bronx Week Grand Finale Parade, Food & Arts Festival, and Concert!

UPCOMING EVENTS