Committee on Small Business

Good morning and welcome to New York City Council vote on small businesses. At this time, we're asking everyone to silence all electronic devices, and at no point in time anyone should approach the dais. Chair, you may begin.

Good morning, everyone. I am Councilmember Chanel Thomas-Henry, Chair of the Committee on Small Business. Thank you to my colleagues Maloney, Santos-Suoso, Salaam, Moreno on Zoom, and Brooks Powers for joining us here today. Today we are voting on proposed Introduction 799A sponsored by Councilmember Salaam in relation to establishing a support fund for small retail businesses affected by roadway construction.

And Resolution 328, also sponsored by Councilmember Salaam, calling on the New York State Legislature to pass and the governor to sign legislation providing a tax credit to businesses negatively affected by infrastructure construction. Roadway construction is a common sight in New York City. It's often necessary and can ultimately lead to economic benefits. But construction can also disrupt a business by creating barriers to access.

Construction that disrupts the flow of people can keep customers away from a business and cause temporary economic disruptions. Businesses navigate many significant costs to operate safely and legally in New York City. Many businesses struggled to survive the pandemic, and even more recently, many are recovering from tariffs that briefly and severely affected them. So any long-term city construction that could further complicate a business operation must be addressed.

In New Jersey, when Route 80 was under construction to address a sinkhole, the New Jersey Economic Development Authority launched a grant program to support small local businesses and nonprofits impacted by the partial and full closure of the highway. Proposed Introduction 799A would require the Department of Small Business Services to establish a program of grants to business improvement districts and community-based organizations to help support small businesses affected by city construction projects.

To qualify, the BID or CBO would be required to demonstrate that the businesses within their purview fall within a qualifying construction project area, which is defined as 2 blocks from a qualifying construction project. BIDs or CBOs would then be required to consult the Department of Transportation's website to show that a construction project is authorized by a permit issued by DOT for at least 90 days, is performed by or on behalf of a city agency, requires full closure of a roadway or sidewalk, and is located no more than 1 block from a commercial corridor.

These grants could be used to provide services to businesses in the qualifying construction project area, such as district marketing, public art, or creative lighting. The grants may also be used to provide direct reimbursement to small retail businesses within the affected area. The total amount of grants given to a SBID or CBO cannot exceed $100,000, and the grant amount must be determined by factoring in the amount of small retail businesses within the affected area and the scope of services that the organization intends to provide.

Direct reimbursements to businesses could not exceed more than $10,000 per business. Resolution 328 considers a different avenue for a similar proposal by calling for the state to pass legislation providing a tax credit to businesses impacted by infrastructure construction. Both bills seek to resolve the temporary yet significant challenges businesses face when road and other infrastructure construction reduces access to their business.

I want to thank Tyler Walls and Rebecca Barrilla from Central Staff for their support. As well as my own staff, Franklin Richards, Sierra Smith, Derek Slaughter, and everyone working in the background to help make this possible today. I will now turn it over to Councilmember Salaam to say a few words about his bills.

Thank you, Chair, and thank you to the members of this committee. Intro 799A and Resolution 328 addresses what happens to small businesses when long-term public construction closes the streets around them. New York City has a record 183,000— that's 183,000 small businesses in operation, and many of them depend on foot traffic and visibility. Research for the Minnesota Department of Transportation found that independent, non-chain businesses are the most likely to be hurt by construction and changing traffic patterns.

Introduction 799A does 2 things. First, it creates a grant program at the SBS for bids and community organizations in commercial corridors affected by city construction that fully closes a roadway or sidewalk for at least 90 days. Each qualifying project can receive one grant of up to $100,000 to help nearby businesses throughout marketing, wayfinding, fighting, and other services Second, it establishes a reimbursement program so that small businesses near the construction can be reimbursed for eligible costs for up to $10,000 per business.

Grantees report to SBS— grantees, rather, support— report to SBS, and SBS audits the spending and program runs, and this program runs for 3 years. But 799 cover city projects, and the city cannot do this alone. During the first phase of the Second Avenue Subway, and the Manhattan Chamber of Commerce— the Manhattan Chamber of Commerce reported that almost half of the businesses between 68th Street and 95th Street had moved or closed within 5 years because of declining revenue.

That is a state— that is state work. Thank you. through the MTA, and the state needs to step up too. Resolution 328 calls on the state legislature and the governor to provide a tax credit for businesses affected by infrastructure construction. I want to thank my Chief of Staff, Wilma Brown, and Legislative Director Mufasa Hussain for their tireless efforts from the beginning stages of both these items.

I also want to thank the committee staff Tyler Isaiah Walls, and Rebecca Barrilla for their work on this legislation, as well as SBS and my co-sponsors. I urge my colleagues to vote yes on both. Thank you. Thank you, Chair. Thank you.

I now call on the clerk to call the roll. Matthew DiStefano, committee clerk. Committee on Small Business roll call vote on proposed Intro 799A and Resolution 328. Both items are coupled. Chair Thomas-Henry? Aye. Brooks Powers? Permission to explain my vote? Permission granted. I just wanted to congratulate Councilmember Salaam on these 2 very important bills. Having a district that has been impacted greatly by construction and how it's impacted our small business, I think this is a step in the right direction.

I'd also like to be added as a co-sponsor of Reso No. 328, and with that, I vote aye on all Hanif. If there are baked beans, I'll sign up. Aye. Thank you. Salam. I vote aye. Maloney. Permission to explain my vote? Permission granted. I vote aye. Want to congratulate Councilmember Salam, and my district borders the Second Avenue subway where we saw roadway construction really impact small businesses.

So I'm really grateful for this legislation. Thank you. Santos Suoso. I vote aye. Congrats. Morano. Aye. Congratulations. Thank you. By a vote of 7 in the affirmative, 0 in the negative, and no abstentions, the items have been adopted.

Thank you. This meeting is now adjourned.