Who Controls NYC’s Economic Development Funds?

City-level agencies: NYC Economic Development Corporation &  NYC Industrial Development Agency (IDA)  State-level agencies: Empire State Development Corporation & Lower Manhattan Development Corporation

For more information on city-level economic development agencies, see our infographic Local Law 62 and You: Where do Citizens Fit in?

The NYC Economic Development Corporation (EDC)

The Economic Development Corporation is a nonprofit organization that contracts with the City of New York to oversee and administer economic development programs.

Most members and the chair of the EDC board are appointed by the Mayor for renewable three year terms. The EDC has a staff that works on the day-to-day details of project management. Learm more about EDC's board structure and its bylaws.

On July 3, 2012, the office of the New York State Attorney General announced that it had reached a settlement with the New York City Economic Development Corporation after finding it had violated the Not-for-Profit Corporations Law by illegally lobbying the City Council on behalf of development projects at Coney Island and Willets Point. The announcement was first reported in The Wall Street Journal. The settlement includes the creation of a new entity, the New York City Economic Growth Corporation.

For more information on the Economic Growth Corporation:

Hearing notice for the Economic Growth Corporation Board of Directors meeting on July 10, 2012, with links to proposed resolutions and bylaws presented at the meeting.

Meeting minutes from the June 21, 2012 meeting of the Economic Growth Corporation Board of Directors

 

NYC EDC Board Members

The NYC Industrial Development Agency (IDA)

The Industrial Development Agency contracts with the Economic Development Corporation in accordance with New York State legislation (General Municipal Law (GMU) Article 18A Title 2 Section 917) to carry out the financial end of its programs. The IDA is empowered to issue tax-exempt bonds, authorize certain tax exemptions, and make other financial inducements. It is also charged with monitoring the financial packages it gives out. A description of many of IDA's programs can be found on the IDA website.

The IDA board meets once a month to review and approve proposed deals. According to legal requirements, the IDA must issue a public announcement 30 days in advance of a public hearing on each item it is considering. The hearings generally take place on the first Thursday of the month. The board meetings at which votes are taken on proposals are generally the following Tuesday. A schedule of upcoming public hearings and board meetings, along with public hearing information, can also be found on the IDA website. Good Jobs New York posts these public hearing notices on our Monthly Subsidy alert.

The IDA board in many cases overlaps with the board of the EDC. Five are appointed by the mayor on the recommendation of Borough Presidents, some positions, such as the City Comptroller, the City Corporation Counsel, and the City Planning Commissioner are automatically appointed "ex-officio." The remainder plus the chair are appointed by the mayor.

NYC IDA Board Members

BuildNYC Resource Corporation (BuildNYC)

BuildNYC predominantly provides tax-exempt financing to help non-profit organizations.

BuildNYC Board of Directors


State Level Agency:

The Empire State Development Corporation

The Empire State Development Corporation, ESDC , oversees economic development state-wide, handles most energy benefits, and, in the wake of the September 11th attacks, is the legal parent of the Lower Manhattan Development Corporation (LMDC).

Public Participation Opportunities

Both city and state economic development agencies are required to hold public hearings on all proposed subsidies over $100,000. At the hearing, members of the public have the opportunity to submit written testimony, give brief comments, and review materials on each project. 

Notices of Public Hearing for the IDA are published in the classified section of the New York Post on the second Saturday of each month. They are also posted on the Economic Development Corporation's website. Notices of all public meetings for the Empire State Development Corporation are posted on the ESDC website

The public hearing notices include company names and locations, benefit amounts, and possible tax breaks as well as date and time of hearing and the number to call in advance to notify the public information officer that you plan to submit testimony.

Read our blog entry on the current  law establishing how New York City must report on company specific discretionary deals.