Secures unprecedented transparency and accountability concessions from New York City Economic Development Corporation
City Comptroller John C. Liu today announced that the New York City
Economic Development Corporation (EDC),
the Mayoral-controlled entity that awards corporate subsidies and tax
breaks, has instituted unprecedented new measures for transparency and
accountability as part of its contract agreement. Liu made the
announcement after his office registered the EDC’s
annual $896 million Master and Maritime agreement for the City.
“Finally
we have more light shining into the black hole that has been EDC. They
will answer to taxpayers now that we've cracked open their books,” said
Comptroller
Liu. “These new measures will help EDC be more focused on their
responsibility to create real jobs, not simply dole out publicly funded
subsidies to private companies.”
As part of the contract parameters, City Hall has agreed to implement unprecedented reforms including:
-
Publication of all City-funded expenditures on Comptroller Liu’s
Checkbook NYC online transparency tool, beginning Feb 1, 2013;
-
Detailed
reports on companies that fail to live up to their job commitments
along with the enforcement actions, including claw backs, which were
brought
against them;
-
Certification
by the President of EDC that the agency is in full compliance with the
terms and conditions of the NY State Attorney General’s agreement
to prevent additional illegal lobbying; and
-
Provisions to encourage the hiring of New York City residents for publicly subsidized projects.
Background:
Comptroller
Liu has criticized the EDC for its failure to create jobs, while doling
out huge corporate subsidies. Even though Comptroller Liu
views these reforms as a step in the right direction his office will
continue to scrutinize the agency’s finances and incentive programs.
After
revelations by the State Attorney General of illegal practices at the
EDC, Comptroller Liu’s July 9, 2012 letter urged Mayor Bloomberg
to “…finally open the EDC’s books to the public. The EDC’s FY 2013
budget is projected to exceed $800 million. It’s time to post all of
the EDC’s spending online on a daily basis, as other City agencies now
do through Checkbook NYC.”
In
a letter dated September 26, Liu wrote, “The City cannot afford to miss
this opportunity to meaningfully improve the way it promotes economic
development and job creation in a more transparent and accountable
manner.”
“If
the EDC cannot manage its own operations with greater transparency and
accountability, produce the number and types of jobs it has promised,
and stimulate the City’s economy to a degree commensurate with the
public subsidies it receives, then the City must directly reassume those
responsibilities,” Liu continued, directly questioning the premise that
economic development policy can best be implemented
through a quasi-city nonprofit organization.
Some links to past statements/audits are below:
