REBNY CALLS FOR MANUFACTURING POLICY
Zoning Restrictions Ineffective In Protecting Industrial Jobs

New York, NY, June 30, 2003 - The Real Estate Board of New York (REBNY) called for a new growth-oriented policy to encourage manufacturing employment, in a white paper released this week. The new policy would include a mix of economic stimulants such as tax and financing incentives, relocation assistance, and real estate ownership programs.

The study, Zoning & Manufacturing: A Balanced Approach to New York City's Growth, showed that New York has consistently been losing manufacturing since the late 1950's, despite efforts to stem the tide with zoning restrictions. The report indicates that zoning policies have stunted economic growth and have been harmful to retail, residential, and commercial development.

"Instead of maintaining underused properties in industrial zones, the City needs a progressive policy that will spur manufacturing job growth and foster economic activity," said Steven Spinola, President of REBNY. "It is clear that special zoning regulations have been ineffective in their intended goals and its time we addressed this issue to make the most of the manufacturing sector in to New York."

As part of its plan, REBNY proposed prioritizing rezoning of underused manufacturing land to allow other uses and removing the specialized protective zoning that hasn't worked. In addition, the plan calls for:

· Lowering taxes, including an exemption from Commercial Rent Tax for manufacturers in Manhattan;
· Mortgage assistance or low interest loans to foster ownership of land and buildings by manufacturing firms;
· Creation of a Trust for Industrial Space to help businesses acquire, renovate, and maintain manufacturing buildings;
· Substantial relocation benefits for firms moving anywhere in New York City, including within the same borough;
· Direct government subsidies to certain industries in high-cost locations if relocation is undesirable; and
· Examination of parking regulations and transportation needs of manufacturing firms.

According to published reports quoted in the REBNY white paper, the city lost 70 percent of its manufacturing jobs between 1960 and 1990, dropping from approximately 1 million to 300,000. The REBNY study cites the high cost of doing business in New York and strong competition from other locations as key factors in the job losses.

Meanwhile, special zoning restrictions-such as the creation of the Special Garment Center District in 1987-have not only failed to maintain jobs, but have resulted in lost revenue for building owners and lost tax revenue for the City.

"Zoning changes can open up a floodgate of economic activity in some of the areas that are currently derelict and underused," said Mr. Spinola. "Not only will this new activity help create more jobs, but it will rejuvenate the communities that have been inactive and neglected for too long."

About REBNY
As the leading advocate for the real estate industry in New York City, The Real Estate Board of New York represents major office and residential property owners and builders, brokers and managers; banks, financial service companies, utilities, attorneys, architects, contractors and other individuals and institutions professionally interested in real estate. REBNY is involved in crucial municipal matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes and legislation.