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Remarks to the Association for a Better New York

February 5, 2002
As Delivered


Thank you, thank you...In 1966, I came to New York, and my first job was directly across the street from here. I don't think I ever looked across the street and said someday I'll be standing on a podium with a lot of people in front of me but I am thrilled to be here. It is, this is a great building, this is a great street, this is a great part of town and this is the greatest city in the world and we shouldn't forget that. I did talk to the manager of the hotel, Chris Conoble on my way in and I said how's business and there was no equivocation. He said things really are coming back and that's what you'd expect and that's what we want and that's the best memory we can ever have for those we lost. So, there is a lot of reason to be... to have a smile on our face.

I want to start out by telling you that the last ABNY breakfast I was at, my predecessor took credit for multiple Yankee championships, one Subway Series, and a record few snow days. Let me point out the difference between myself and my predecessor. I want you to know that I had absolutely nothing to do with the Patriots victory. You cannot blame me for the Knicks' collapse, although I know the press will do that. And I had little to do with the impending drought. Having said that, let me just add something to what I was going to say. My predecessor, Rudy Giuliani did an enormous amount for this city. And I think, I just wanted to personally take a moment to thank him. He was phenomenally supportive to me in terms of getting me elected. He could not have been more helpful in a transition. He has been as cooperative and helpful as anybody could ever ask of their predecessor. And Rudy couldn't be here today but I know his spirit is here. Rudy Giuliani as much as any of us, was, is, and always will be New York and I think we all owe him a debt of gratitude. Rudy, thank you.

Now there is one thing I've done that I know my predecessor did not do. In the interests of full disclosure, I must tell you that I have offered Woody Johnson my support for a West Side football stadium if he gives me Vinnie Testaverde's job. Unfortunately, it looks like I'll have to address my first ABNY breakfast as Mayor rather than as a quarterback. But it couldn't come at a more important time.

In 1971, six Fortune 500 companies abandoned New York, and sixteen more declared their intention to leave. Out of this emerging crisis, Lew Rudin and incidentally Rachel is here with us tonight, Rachel, we miss him. Lew Rudin led other prominent New Yorkers in giving birth to ABNY. Over the next thirty years, Lew worked tirelessly to assure that New York remained the premier financial corporate center.

Thanks, in part, to the efforts of Lew and ABNY, the Big Apple was polished and New York became a better place for people to live, to work and to play. And, as we all know, our city reestablished itself as the undisputed capital of the world. Ironically, now people are once again questioning New York's future. It's true; we face significant challenges.

It's true; our fiscal condition is more troubled than any time since the 1970's. Once again, people are concerned about companies moving jobs out of the city for ostensibly cheaper and more convenient and diverse office space.

But every one of you knows that the doubters could not be more wrong. This is not 1971. And with Jack Rudin's continued leadership in our community, and with Bill's leadership of ABNY, New York's best days are ahead.

It is particularly appropriate that we are meeting downtown today. For this is the place that New York began and it is the place in which we will define our future. I am completely confident that we will do so brilliantly, for throughout our history, at critical junctures, New Yorkers have pulled together to accomplish wonderful things.

When New York was a cramped port town, residents excavated ten million cartloads of rock and soil and created a park unlike any other in the world, before or after. Fifteen years after Central Park was completed, the property values of the wards surrounding it had increased nine-fold.

When in the early 1900's, conditions on the Lower East Side were so intolerable that the health and safety of city residents were severely threatened, the city and the private sector banded together to add 325 miles of subway track in less than ten years. That more than doubled the system, and made much of Brooklyn, the Bronx and Queens accessible for the first time.

And when the United Nations had pretty much decided in 1946 to locate elsewhere, the city, the Rockefeller family and others put together a plan in just 96 hours to transform cattle pens and slaughterhouses into the world's meeting place.

Arising out of the greatest tragedy in our city's history, a new spirit is calling New Yorkers to action today. First as a candidate, and now as a mayor, everywhere I've gone I have seen and felt the remarkable pride that New Yorkers feel in their city and in each other. It is only exceeded by their commitment to do everything possible to ensure that New York is even
greater than it was before September 11th.

We have all seen that spirit reflected in the amazing progress made at Ground Zero since the attack. Who would have ever imagined that the site will be excavated substantially ahead of schedule and under budget, and hopefully without a single serious accident? The partnership that has existed between labor, the private sector and all levels of government has made that possible.

My job as Mayor is to channel the unprecedented spirit that exists here into the implementation of short-term plans and a long-term vision that will ensure that our economy remains the envy of the world. My purpose in coming here today is to describe for you some of that plans and that vision.

Right now, we must take several steps to build confidence in our city. On February 13th we will propose a budget that will give investors, the public, and our corporate citizens faith that we are putting our fiscal house in order. We will ask all New Yorkers to share in the sacrifice to ensure New York's fiscal strength.

We will not raise taxes now, we will not do without for the moment...we must do without for the moment. But today is the time for all of us to find ways to do more with less. That's how we're going to go forward.

In Lower Manhattan, things are improving. The frozen zone is now down to a fraction of its original size; new subway stops, roads, stores, restaurants and hotels, including the new Ritz-Carlton, are opening every day; the viewing platform accommodates thousands of visitors in an orderly and respectful way. I want to express my appreciation to all those individuals and firms who worked so hard to help rebuild lower Manhattan in the days immediately following the attack: ABNY, the New York Partnership, Verizon, Con Ed, the Real Estate Board of NY, the MTA, and Community Board #1. Volunteers from all fifty states, and myriad foreign countries and 8 million of the best people in the world.

But now we must make it easier for people to get here, and to make it more pleasant for those when they do. There are several steps that we are taking immediately to ease traffic congestion downtown. The first thing we are doing is getting as many cars off the streets as possible, starting with city vehicles. Effective March 1, I have ordered city agencies to reduce the number of parking permits they hold by 30% and to cut the time to permit expiration in half. Iris, do it, way to go.

We all know that the streets are down here are being ripped up repeatedly with little coordination or little communication, creating congestion and confusion. As of today, DOT Commissioner Iris Weinshall has appointed a top official, Andrew Salkin, as construction coordinator for Lower Manhattan. Mr. Salkin's job will be to ensure everyone working on the streets -for communications, power, water, sewage, steam, gas, transportation, everything-will cooperate to get street repairs done with the least amount of disruption possible.

We are working aggressively to open the Brooklyn-Battery Tunnel. To do this, we need to open three lanes of West Street in each direction first. That should be done by May. We are taking steps to dramatically expand ferry service in Lower Manhattan. An emergency task force has been formed of all relevant agencies - DOT, the Port Authority, the MTA, EDC, the Empire State Development Corporation, City Planning, the Lower Manhattan Development Corporation and the Deputy Mayor's office to make that happen.

Once people are downtown, there must be more for them to do and more places for them to stay. Perhaps most significant for downtown office workers and residents, Century 21 will open in a few weeks. I will be there to cut the ribbon. The Empire Suites Hotel will reopen in early May just in time for the Tribeca Film Festival.

In my prior life, I opened offices in most major cities around the world and, without a doubt, in no other city can you find the talent and the competitive spirit we have here. That doesn't mean everything is free here. We will never be the cheapest place to do business - just the place giving the best value. And in post-September 11, it certainly is harder to operate downtown. But there's more reason to be here than ever before. Whether it's patriotism or self-interest, this it's happening. This is where you want to be. To get out that message, we need to develop a multi-layered, multi-year strategy for keeping companies in the City, and for attracting new ones, foreign and domestic, to establish a precedence here. Incentive programs undoubtedly play a role. Two weeks ago Governor Pataki and I announced the details of a federally funded program to provide as-of-right incentives to small employers who commit to Downtown. Senators Schumer and Torricelli talked about that again this weekend. The city's Economic Development Corporation and the State's Empire State Development Corporation are working with unprecedented cooperation and speed to design a plan for incentives for large employers and residents.

But perhaps as important as money is attitude. We will change our orientation toward business. The city will think of its job-creating, tax-paying employers, big and small, as valued clients. We all know that too often the city has been reactive. From now on, that will be different. Under the leadership of Andy Alper, the New York City Economic Development Corporation is being restructured around a strategy of "client coverage." Andy spent the last 20 years at Goldman Sachs, a firm that certainly knows how to cover clients.

EDC is creating coverage teams to proactively develop relationships with major companies and industries. They will identify problems and opportunities before it is too late. EDC will be a portal, an advocate within the city government. If you haven't been called yet, you will be. Andy, Deputy Mayor Dan Doctoroff and I - three guys arguably with some background in business - will often lead these teams. Let me tell you we're not going to take no for an answer.

We must also realize that the lifeblood of our economy is small business. About 54% of private sector employees in New York work for companies with 100 employees or less; indeed, 98% of all companies in the City have fewer than 100 employees. And often, I can tell you from personal experiences, those small businesses become big businesses. Our small businesses need a partner in government, a partner who is responsive to their ideas, recommendations, and needs. And that will be us. We will be that partner.

As a result, we will refocus the mission of the Department of Business Services headed by Rob Walsh to be the ombudsman for small business. We will explore the creation of small business service centers in each of the five boroughs, at which all key agencies will be represented in a bullpen-like setting. With the ability to field inquiries and requests, to cut through bureaucratic confusion and provide immediate assistance, we will create a climate in which small businesses can easily form and flourish. Good morning governor.

Complementing our focus on small business is our dedication to strengthen the City's Business Improvement Districts. BIDs like the Downtown Alliance have been among the best examples of public-private partnerships, and a boon in these budget-constrained times. We will evaluate giving the 41 existing Bids greater ability to raise their assessments and to change the rules to enable new Bids to be more easily formed throughout our city.

These are some of the things that can affect things today. But we must also be bold and innovative in our thinking to chart our medium and long-term future. Our top priority, of course, is Lower Manhattan. Despite enormous progress and an extraordinary array of assets, for the past fifty years Lower Manhattan has been losing market share as a workplace to midtown and the suburbs. Out of the terrible tragedy we have suffered, we must take the opportunity to rethink Lower Manhattan. Our goal, under the leadership of Dan Doctoroff, whose official title is Deputy Mayor for Economic Development and Rebuilding, is to work in partnership with the Lower Manhattan Development Corporation, the State, the Port Authority and other stakeholders, to create a much more vibrant, 24-hour community.

I am thrilled that John Whitehead and Lou Tomson have taken the helm at LMDC. Their wisdom, experience and sensitivity will be critical to the successful implementation of a plan that is bold and respectful. Momentumis gaining rapidly with the naming of four advisory panels last week with several key staff appointments in the next couple of weeks.

To be sure, downtown must remain the financial capital of the world, with the New York Stock Exchange, and many great financial institutions who have recommitted to downtown, at its core. But Lower Manhattan in the future must be filled with workers from a wide variety of industries and with residents and tourists.

To do that, we have to find better ways to get people there. Our mass transit infrastructure was built for the city that existed 80 years ago. We must creatively explore new ways to get people down here and around by subway, rail, road, ferry, and on foot, and then we must connect them with each other. The Department of City Planning is evaluating creative rezoning to permit greater residential, cultural and retail use. The Department of Housing, Preservation and Development and the Housing Development Corporation will aggressively look for sites that offer new housing opportunities. We want a 24 by 7 destination not just an 8 by 5 location.

There is no doubt that the Downtown of the future will be more vibrant, more exciting and easier to get to than it ever has been. It isn't now and won't be for several years, but stay tuned. We know what to do-and are doing it! We owe nothing less as a memorial to those we lost.

Even with a host of as-right incentives, we often don't provide a competitive offering for those companies who want less expensive space or for those who demand back-up facilities or locations on another power grid. We can offer attractive alternatives, though. We must encourage those companies to look in other parts of the city. In the year 2000, for the first time in the history of this City, the Bronx, Brooklyn, Queens and Staten Island surpassed Manhattan in the number of jobs created.

Just across the Brooklyn Bridge, thank you, (unclear) people from other boroughs, glad to hear it. Just across the Brooklyn Bridge, downtown Brooklyn can be a viable competitor. On a cost-benefit basis it can be far cheaper than going across the "other" river. Downtown Brooklyn has better transportation, the Brooklyn Bridge Park nearby, attractive surrounding neighborhoods, 30,000 university students to draw from, and a blossoming arts community. With bold vision and thoughtful rezoning of underutilized space, Downtown Brooklyn can build on successes like Metrotech, the Marriott Renaissance Hotel and the Atlantic Terminal Mall and become a premier destination for those businesses that are cost conscious.

Thank you. We have similar opportunities in Long Island City, where there are two million square feet of commercial space available on the waterfront, and the Queens Plaza Area that has recently been rezoned, in the middle of one of the great transportation hubs in the metro area.

Through EDC, we will find locations for new business continuity centers around the city that will provide easily accessible, state-of-the-art, plug-and-play facilities. These low-cost, shared facilities in different parts of the city, on different power grids, will assure that New York is always open for business and friendly for labor.

We must not sacrifice New York's potential because of looming short-term demands on our City. We cannot allow for New York to be compromised by our inability to look towards the future.

From the Brooklyn Bridge to the Triborough Bridge, we have a once in a century opportunity to reclaim a waterfront of abandoned wharves and warehouses and protect it for parks, homes and offices. Other areas where we must focus on include The Hub in the Bronx, Harlem, Flushing and Jamaica in Queens, and St. George in Staten Island.

But perhaps the biggest long-term opportunity to expand our economic base is in the Hudson Yards, the area surrounding the Javits Center on Manhattan's far west side. Block after block after block, the surrounding area is dominated by aging warehouses, open parking lots, and auto body shops. The nearest subway is a half a mile away.

In the center of it all is the Javits Center, which is the 19th largest convention center is North America. We shouldn't be 19th in anything. In the aftermath of September 11th, I think we all recognize how dependent we are on the tourism industry. Tourism is the second largest employer in our city, and those employees are most often on the first rung of the economic ladder. We need to substantially increase the size of the Javits Center and make it a world-class facility. We need to bring mass transit to the area, including the #7 line, the Long Island Railroad, Metro North service on Amtrak's old Empire Line, and enhanced ferry service. We need parkland and better access to the Hudson River Park. And we need to rezone the area to accommodate commercial and residential growth.

By doing these things, we will unlock the potential of the surrounding area, turning Manhattan's last frontier into one of the world's great spaces. To accomplish this we must start right now. The same partnerships that we are forging with the state and the Port Authority for rethinking Lower Manhattan will be required if we are to turn the Hudson Yards into something magnificent.

We face many tough years of rebuilding ahead. We must sustain the spirit and unity that we enjoy today. Hosting the Olympic Games in the year 2012, with their fixed deadline and the worldwide attention they can generate, will be the spark that keeps us going through the difficult periods. Ultimately, they can also celebrate our rebuilding efforts too.

Fiorello La Guardia, who was as much a dreamer as he was a mayor, once said, "Sometimes I see the City of Tomorrow, with marvelous parks and buildings, finer hospitals, safer and more beautiful streets, better schools, more playgrounds, more swimming pools. It will be a reality some day."

Lew Rudin would know that the time to get ready for that "some day" is today. I ask you all to rally to the city's cause as Lew did and the original founders of ABNY did 30 years ago. Together we must direct the tremendous intellect, talent and dedication of all New Yorkers to make that City of Tomorrow our New York today.

This work will be our legacy.
Let's get started.
Thank you.