Renewal of business incentive programs help attract new companies

According to The Alliance for Downtown New York, the Lower Manhattan Energy Program, and the Industrial and Commercial Incentive Program, two vitally important business incentive programs that were major catalysts for development in the area, have been extended by the NYS Legislature. A three-year extension of the Commercial Revitalization Program, which reduces real estate taxes in pre-1975 buildings in the area for five years by up to $2.50 per s/f, was approved by the NYS Legislature in March. The availability of business incentive programs helped attract hundreds of new companies and thousands of workers downtown and restore the number of businesses currently located in the area to its pre-Sept. 11, 2001 level. Thanks in large part to these incentive programs, Lower Manhattan is now one of the strongest commercial real estate markets in the country and home to an ever-diversifying economy. A recent survey of the area's commercial real estate market by the Downtown Alliance determined that: * The area is the nation's fourth-largest business district, with a daily population of 310,000 office workers. More than 356,000 total employees are expected by 2012. * The area boasts the nation's third lowest downtown office vacancy rate at 6.7%, down from 7.2% last quarter and 11.2% a year ago. * The real estate market saw nearly 2.26 million s/f of leasing activity, and over $2.3 billion worth of property has changed hands since the beginning of 2007. * Since July 2005, 149 firms have moved to the area from Midtown and other areas of the metropolitan area, filling 3.5 million s/f. Business incentives currently available to companies considering moving to or expanding in the area include: * Real Estate Tax Abatement: A $2.50 per s/f real estate tax abatement for up to five years for commercial tenants that locate in non-residential pre-1975 buildings south of Murray St. It expires March 31, 2010. * Commercial Rent Tax Special Reduction: Offers an exemption on commercial rent tax for retailers and commercial businesses with an annual rent over $200,000. It expires June 30, 2009. * Industrial and Commercial Incentive Program: Provides a partial exemption from or abatement of property taxes for up to 25 years for eligible industrial and commercial buildings south of Murray Street that are built, modernized, rehabilitated, expanded or otherwise physically improved. It expires June 30, 2008. * Lower Manhattan Energy Program: Can reduce energy costs by up to 45% for 12 years for eligible buildings and commercial tenants in those buildings. It expires June 30, 2010. * Lower Manhattan Relocation Employment Assistance Program: Provides a $3,000 tax credit per employee, per year, to businesses that relocate to Lower Manhattan from outside the five boroughs. A full list of incentives, and an incentives calculator that can help companies determine how much they can save, is available at www.downtownny.com/dobusiness/assistance/incentives.