ICYMI: State of the NYC Industrial Economy

On October 30, AIA New York hosted a program with DCP, EDC, and SBS, examining the State of the NYC Industrial Economy and the launch of the NYC Industrial Plan. The Plan, required by City Council legislation, will explore how the city can best support the development of a modern and growing sustainable industrial economy and well-utilized industrial areas. This event brought together experts in the field to examine the state of NYC’s industrial economy and discuss key issues that may shape the plan as it is developed in the months ahead. We heard from DCP Chair Dan Garodnick, NYCEDC President and CEO Andrew Kimball, and SBS Commissioner Dynishal Gross, as well as NYC Council Majority Leader Amanda Farias, Eric Ottaway, CEO of Brooklyn Brewery, Tucker Reed, Principal at Alianthus, Howard Slatkin, Executive Director of Citizens Housing & Planning Council, Jesse Solomon, Executive Director of Southwest Brooklyn Industrial Corporation, and Tiffany-Ann Taylor, Vice President of Transportation at Regional Plan Association. 

Key Takeaways:

• Power of the pen in the zoning code to get the market moving  

• Fast Facts 

• • Industrial land is 15% of the city’s land 

• • 1 in 3 New Yorkers receive a delivery every day  

• IBZs — Has this policy been effective, and should we think about an alternative strategy? 

• • Created in 2005 after the Greenpoint/Williamsburg rezoning with the aim of identifying the most productive industrial areas in city and create tax incentive programs to encourage businesses to relocate within those boundaries 

• • Program provides predictability to support business investment in those areas without risk of residential rezoning 

• • Finding opportunities for intensification of activity is critical to meet the city’s evolving needs, and delineating boundaries for where people can have assurances that they can make long term investments is a useful tool 

• General education is needed on the industrial economy and freight and logistics, particularly understanding the costs and challenges for our city and regionally  

• Cost of doing business in the city: parking and space  

• • Need to solve for creating opportunities for space for all the city’s needs and alleviating the costs of construction for these projects 

• Why do businesses continue to locate to NYC despite these challenges?  

• • The market: self-contained, labor pool, opportunities to scale, and diversity 

• Panelist’s Ideas for Items to Address in the Industrial Plan 

• • Analysis of regional impacts and connectivity  

• • Identify appropriate places for certain types of uses—never saying yes or no to a thing, but rather you are saying yes or no in one place or another  

• • Thoughtful consideration of how industrial zones are mapped around waterways and how industrial areas service a Blue Highway  

• • Encourage industrial uses outside of IBZs for businesses that can co-exist with residential 

• • Answer the question of why we need more investment to encourage growth and stabilization in communities 

Resources  

• NYC Must Create New Industrial Development Plan under Council Bill by Annie McDonough (Nov 2023)
• Delivering the Goods: NYC Urban Freight in the Age of E-Commerce by AIANY Freight and Logistics Working Group (Nov 2022) 
• DCP Home Page on NYC Industrial Plan