Blog Post: Occupying Subsidized Space
The ability of Occupy Wall Street protesters to remain in Zuccotti Park in Lower Manhattan for weeks while Occupy groups in other cities are being evicted from their encampments is, ironically, based on the fact that the park is private rather than public property.
But it’s a special category of private property. The park was created more than 40 years ago as part of a deal in which U.S. Steel, which was building an adjacent office tower now called One Liberty Plaza, was allowed to put additional floors on the structure in exchange for providing an open space for the public. The space is not subject to the same rules, including curfews, that apply to city parks.
The zoning variance is not the only factor that complicates the status of Zuccotti Park.
Brookfield Properties, the current owner of One Liberty Plaza and the park, benefits directly and indirectly from a host of taxpayer-funded subsidies. The New York Daily News reported on some of the direct grants received by Brookfield after 9/11, and further details on the full extent of subsidies are in the chart below and in our Database of Deals.
Brookfield, one of America’s largest commercial real estate companies and its premier tenants, took advantage of city and state economic development programs. Millions of dollars in economic development grants earmarked for rebuilding after the attacks of September 11, 2001 went to Brookfield and some of its tenants at One Liberty Plaza (NASDAQ and the Royal Bank of Canada among them). Some tenants also received discretionary tax breaks from the New York City Industrial Development Agency.
A breakdown of the $176 million given to Brookfield Properties, its subsidiaries and tenants in Lower Manhattan is here.
The subsidy figures don’t tell the whole story. There are other economic development programs that Lower Manhattan firms benefit from, but how much is earmarked for a particular firm isn’t publicly known.
Among the many reasons why the Occupy Wall Street protesters should be allowed to remain in Zuccotti Park is that they are occupying taxpayer-subsidized space.
Monthly Subsidy Alert
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Fresh Perspectives on Fresh Direct
GJNY takes a close look at the proposed subsidy package--worth nearly $130 million--for Fresh Direct to relocate to the South Bronx. In early 2012, Fresh Direct started a bidding war between New York City and New Jersey officials when it threatened to leave its current home in Long Island City, Queens. Learn more about the subsidies, job promises and the efforts of residents to block the on-line grocery retailer's move to their waterfront.
Keeping an eye on Hurricane Sandy recovery money
As government aid begins to flow into areas devastated by Hurricane Sandy, Good Jobs New York will provide analysis and recommendations regarding these resources that promote a transparent and equitable allocation of funds that go to individuals and businesses that need it most.
Database of Deals
Our database contains information on thousands of companies that received economic development subsidies in New York City.
Spotlight on Economic Development
Learn about major corporate giveaways to the financial industry, sports facilities and retail developments in New York City.
Additional Resources
- The Great American Jobs Scam: Corporate Tax Dodging and the Myth of Job Creation by Greg LeRoy, executive director of Good Jobs First
- Corporate Subsidies and You: Where Do New Yorkers Fit In?
- Guide to Corporate Research by The Corporate Research Project
- Glossary of Terms by Good Jobs First
Good Jobs FIrst
Our parent organization is the nation's leading resource for grass roots groups and public officials seeking to make economic development subsidies more accountable and effective.