NYS Office of the Comptroller DiNapoli: Statewide Local Sales Tax Collections Surge Nearly 58 Percent in May

 

Major Boost for Local Governments Reliant on Sales Taxes

 Local sales tax collections in May increased by 57.8 percent over the same month in 2020, the highest one month increase in recent history, State Comptroller Thomas P. DiNapoli announced today. Collections totaled $1.4 billion, up $530 million from May of last year.

“For the second straight month, local sales tax collections had a tremendous boost. Strong collections in May show the economy continues to improve as spending rebounds from the effects of the COVID-19 pandemic and the standstill it created in New York state in March 2020,” DiNapoli said. “Combined with direct federal assistance and restored state aid, the recovery of sales taxes will help New York’s local governments rebound from the effects of last year’s revenue shortfalls.”

The extraordinary growth in monthly local sales taxes reflects the fact that collections in May 2020 were especially low during the worst part of the first wave of the pandemic, when they declined by 32.3 percent. Nevertheless, collections last month were relatively strong even compared to pre-pandemic numbers, rising 6.9 percent, or $93 million, over May 2019.

New York City’s collections totaled $636 million, an increase of 51.4 percent, or $216 million. Every county outside of New York City also saw year-over-year collections for May grow by double digits, ranging from 17.6 percent in Franklin County to 88.2 percent in Allegany County.

In the last month of each calendar quarter, the state Department of Taxation and Finance reconciles quarterly distributions against what had been reported by sales tax vendors for the reporting quarter and adjusts payments to local jurisdications in those months upward or downward accordingly. In all other months, including May, the payments are based on estimates. The next reconciliation will be reported in mid-July and will provide more information on the regional picture of sales tax collections during the second quarter (April-June) of 2021.

Table

Monthly Local Sales Tax Collections by Region (for detailed monthly breakdown)

Former Construction Executive Sentenced To 46 Months In Prison For Tax Evasion And Bribery Scheme

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced that RONALD OLSON, a former vice president and deputy operation manager at Turner Construction Company (“Turner”), was sentenced today in Manhattan federal court to 46 months in prison for evading taxes on more than $1.5 million in bribes he received from building sub-contractors, in connection with a number of building projects undertaken for Bloomberg LP (“Bloomberg”).  OLSON previously pled guilty before U.S. District Judge P. Kevin Castel, who imposed sentenced today. 

In related proceedings, co-conspirator Anthony Guzzone, a former director of global construction at Bloomberg, was sentenced on January 19, 2021, by the Honorable Lewis J. Liman to 38 months in prison, for evading taxes on more than $1.45 million in the same scheme; Michael Campana, a subordinate construction manager at Bloomberg, was sentenced on July 24, 2020, by the Honorable Denise L. Cote to 24 months in prison, for evading taxes on more than $420,000.  In addition, Vito Nigro, a construction manager at Turner, has pled guilty to evading taxes on more than $1.8 million in bribes that he received in the same scheme, and is scheduled to be sentenced on July 1, 2021, before U.S. District Judge Analisa Torres.[1]

U.S. Attorney Audrey Strauss said:  “Bribery and tax evasion impose hidden, unfair costs on law-abiding customers, employers, and taxpayers.  The type of criminality uncovered in this case undermines a just society.  Appropriately, Ronald Olson has been sentenced to prison for his crime.”

According to the four criminal Informations filed in these federal cases, as well as other public documents and recent court proceedings:

Between 2011 and 2017, OLSON was vice president and deputy operations manager at Turner, a construction firm that performed various building projects in New York City and elsewhere for Bloomberg, a global financial firm.  Throughout those years, Guzzone oversaw such building projects at Bloomberg, while Nigro worked at Turner as a subordinate to OLSON.  Beginning in 2013, Campana was also a construction manager at Bloomberg, and a subordinate to Guzzone.  Each of the defendants participated in a scheme to obtain bribes from construction sub-contractors, who paid kickbacks to the defendants in exchange for being awarded various construction contracts and sub-contracts performed for Bloomberg.

In all, the defendants have pled guilty to failing to pay taxes, between 2010 and 2017, on bribes exceeding $5.1 million.  The defendants received such bribes in various forms, including millions of dollars in cash, as well as construction projects on their individual homes and properties, and the direct payment of personal expenses.  For OLSON, such personal expenses included hundreds of thousands of dollars’ worth of repeated renovations and improvement projects at OLSON’s home on Long Island and his beach house on Long Beach Island, New Jersey, which were fraudulently documented through a series of false invoices.  Projects included home improvements, the cutting and installation of marble, gardening, and the repaving of OLSON’s driveway.  OLSON also used a sham lease for his beach house, through which he falsely characterized $20,000 per month in bribe payments as rent.  Other payments included Guzzone’s receipts of several sets of Super Bowl tickets, worth approximately $8,000 per ticket; and Campana’s receipt of charges related to his 2017 wedding, such as approximately $40,000 paid by sub-contractors to a catering hall in New Jersey, over $13,000 to a photography studio, and over $23,000 to a travel agent for airline tickets purchased in connection with Campana’s honeymoon.  Each of the defendants evaded federal income tax on this bribery income, by failing to declare it on income tax returns for various years between 2010 and 2017.

OLSON, 54, of Massapequa, New York, pled guilty on July 29, 2020, to a single count of tax evasion for the tax years 2011 through 2017.   In addition to the prison term, OLSON was sentenced today to three years of supervised release, and ordered to pay restitution of $661,519.57 in unpaid taxes and interest. 

Guzzone, 52, of Middletown, New Jersey, pled guilty on September 29, 2020, to a single count of tax evasion for the tax years 2010 through 2017.  He was sentenced on January 19, 2021, to 38 months in prison, three years of supervised release, and restitution of $574,005.33 in unpaid taxes and interest.

Campana, 35, of Tuckahoe, New York, pled guilty to a tax evasion charge on November 26, 2019, for the tax years 2014 thought 2017, and was sentenced on July 24, 2020, to 24 months in prison, three years of supervised release, restitution of $155,000 in unpaid taxes, and a fine of $10,000. 

Nigro, 60, of Middletown, New Jersey, pled guilty on October 28, 2020, to a single count of tax evasion for the tax years 2011 through 2017.  He is scheduled to be sentenced on July 1, 2021.  The charges against Nigro carry a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or loss from the offense, and an order of restitution. 

Ms. Strauss praised the excellent work of the Internal Revenue Service.

[1]  In addition, all four defendants have pled guilty in New York State Supreme Court, Indictment No. 04038-2018, to participating in the underlying bribery scheme, and are awaiting sentencing.  

THE HUDSON COMPANIES, BRP COMPANIES AND ELH-TKC HOST RIBBON CUTTING CEREMONY FOR LA CENTRAL A & B

 

New 100 percent affordable development brings nearly 500 new units to the Hub neighborhood of The Bronx

 

$335 million project features a state-of-the-art YMCA, BronxNet studio space and dynamic new retail options

 

Upon completion of the final phase La Central will bring more than 1,000new affordable apartments to the South Bronx

La Central A and B consist of two 100 percent affordable, mixed-income, mixed-use buildings in the borough’s Melrose neighborhood. In addition to nearly 500 units of new housing, the development features a state-of-the-art YMCA, a production studio for BronxNet and a fully programmed rooftop farm operated by GrowNYC as well as dynamic retail tenants. The buildings were thoughtfully designed by MHG Architects in collaboration with FX Collaborative and Future Green Studio. Apartments range from studios to four-bedrooms and are affordable to residents earning between 30 percent and 100 percent of Area Median Income. 

 

“Our vision for La Central ‘To leave no square foot unturned’ becomes reality starting today,” said Aaron Koffman, Managing Principal of The Hudson Companies. “With affordable housing powered by sustainable energy generation, community and educational space for all ages and vibrant recreational space for the neighborhood, La Central will be a hub within The Hub for the South Bronx community. Congratulations to this new wave of New Yorkers to call La Central home. We thank our elected officials, Community Board 1 and our partners in government and the private sector for their commitment to and investment in La Central.”

 

“Today is a very special day as we open the doors to buildings A and B of our La Central development, delivering 500 brand new affordable rental housing units to the Melrose community as well as social and shared community spaces for the neighborhood,” said Andrew Cohen, Managing Director at BRP Companies. “We’re very proud to work alongside The Hudson Companies, ELH-TKC, Breaking Ground and Comunilife on this development, which will have a tremendous impact on the lives of so many local residents and will help to revitalize this great neighborhood.”

“La Central represents the kind of mixed-use, place-making developments this administration is committed to creating through our YOUR Home NYC.  This phase brings nearly 500 affordable homes to the Melrose neighborhood of the Bronx, along with a new YMCA, a rooftop farm, and dynamic retail that will add to the health and vibrancy of the community far into the future,” said HPD Commissioner Louise Carroll. “I want to thank our local elected officials, The Hudson Companies, BRP Companies, ELH-TKC, Breaking Ground, Comunilife, and all of our partners for working with us to make this dynamic project a reality, and to help us welcome the new residents home.”

 

“La Central is a monumental project that will bring more than 1,000 affordably and sustainably built units to The Hub and will transform not only the neighborhood, but the borough and the City by serving as a model of how to do affordable development right," said Bronx Borough President Ruben Diaz Jr. “In addition to affordable and supportive housing, Buildings A & B will start off this development right with a state-of-the-art YMCA, retail space, and a newly renovated BronxNet Television production studio coming to Melrose. I am proud to have supported the larger La Central development with a contribution of $1.6 million in capital funding. Thank you to Hudson Companies, BRP Companies and ELH-TKC, and the State and City agencies and elected officials who came together to make this project come to life.”

“This development represents our efforts to promote economic opportunity, healthy living, sustainable design, and lasting affordability on the City's remaining public sites,” said HDC President Eric Enderlin.  “La Central will provide housing, retail, community facility space, and supportive services that are needed more than ever as the South Bronx community recovers from the impacts of the pandemic. Thanks to all our partners for their vision and dedication to this transformative project.”

 

“The YMCA of Greater New York is proud to be a partner of the La Central development,” said Sharon Greenberger, President and CEO of the YMCA of Greater New York. “Our new state-of-the-art YMCA facility, featuring two swimming pools, is scheduled to open for membership in the Fall of 2021.  We look forward to welcoming Bronx families and friends to the YMCA at La Central.”

 

Once complete, La Central will consist of five individual buildings, which will include more than 1,000 affordable residences, a fully programmed rooftop farm, operated by GrowNYC, 80,000 square feet of community facility space, 45,000 square feet of retail, a public skatepark, and a roof-mounted telescope to be controlled by the Bronx High School of Science. Breaking Ground and Comunilife, completed development of a 160-unit supportive housing and low-income building (Building D) as part of the overall La Central development in 2019. 

 

The development will also feature several retail options that La Central tenants and the surrounding community will be able to take advantage of. In November 2020 the development team announced several new tenants had leased space in La Central A & B. They include the Taste of The Bronx Cafè, an innovative community-driven space created from the operators of The Bronx Beer Hall in the Arthur Avenue Retail Market, and Sustainable Snacks, that will feature gourmet menus prepared by a rotating roster of borough-based chefs; Metate Authentica Comida Mexicana, a Bronx-owned Mexican restaurant with an existing location in Riverdale;  and a small organic grocery operated by Hamood A. Alsaedi, that will stock fresh fruits and vegetables, smoothies and other healthy food options, with an existing location in Long Island City. 

 

The $334 million development was financed through the City’s housing plan, a critical pillar of YOUR Home NYC, Mayor de Blasio’s comprehensive approach to helping New Yorkers get, afford, and keep their homes. ,The plan aims to build or preserve 300,000 affordable homes by 2026. Since  2014, the City  has financed nearly 178,000 affordable homes. 

 

The Hudson Companies, BRP Companies, ELH-TKC, Breaking Ground, and Comunilife were selected from a very competitive request for proposals by previous New York City Mayor Bloomberg to develop the Bronxchester Urban Renewal sites in the Melrose neighborhood, one of the last large assemblages of City-owned vacant land in the South Bronx. A groundbreaking ceremony was held for La Central A & B in April 2018. 

ABOUT THE PARTNERS

The Hudson Companies Incorporated is a private real estate development company started in 1986 that has grown into a leading developer of new housing for all market segments in the New York metropolitan area. The firm is experienced in both new construction and rehabilitation, and is active across the luxury, affordable, and institutional housing markets. Hudson prides itself on seeking out and successfully completing a broad array of complex and exciting residential projects, many of which are joint ventures or public-private partnerships. Reflecting its longstanding commitment to quality, Hudson’s newest projects are designed to meet or exceed green building standards such as LEED, EnergyStar, and Enterprise Green Communities. Hudson also has extensive experience working with government agencies in planning and executing complicated residential developments on underutilized government-owned properties. To date, Hudson has completed more than 5,300 housing units and has almost 5,000 additional units currently in construction or predevelopment.

BRP Companies is a New York-based real estate firm that is at the forefront of mixed-use development and acquisition of urban, multi-family properties. The firm offers a full complement of development, acquisition, construction, property, and investment management. With an experienced staff of 70, a $3.7 billion portfolio and over 9.1 million square feet of current and completed development, BRP is uniquely positioned to meet the demands of urban housing consumers. The firm is an innovator in developing mixed-use, mixed-income, “walkable” urban housing with high-quality, and energy efficient properties throughout the city of New York and beyond. Please visit: www.brpcompanies.com