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Q&A
EDC's contributions to the general fund and revenue sources
1:19:45
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119 sec
Council Member Amanda Farías inquires about EDC's declining contributions to the general fund and its revenue sources. Andrew Kimball explains the primary sources of EDC's revenue and the factors affecting its contributions to the general fund.
- EDC's revenues primarily come from managing about 66 million square feet of city land
- Revenue sources include land leases (e.g., Metro Tech, Times Square sites) and actively managed properties (e.g., Brooklyn Army Terminal, Hunts Point)
- Sales of land or long-term leases with upfront payments also contribute to revenue
- Allocation of funds between EDC and the City Fund is determined in consultation with the Office of Management and Budget
- There hasn't been a net decline in EDC's income, but yearly variations occur based on sales and lease payments
Amanda Farías
1:19:45
Okay.
1:19:45
Thank you.
1:19:46
And just to move over to revenue to the general fund, Over the last couple of fiscal years, EDC has been contributing less and less to the general fund.
1:19:56
What programs and initiatives do you think are causing the decline and is it because EDC's costs have increased or activity has decreased?
Andrew Kimball
1:20:08
Yeah.
1:20:11
EDC's revenues primarily come, the vast majority of them come from the land that we manage on behalf of the city.
1:20:19
It's about 60,000,000 square feet, 66,000,000 square feet of land.
1:20:24
Some of that is just a land lease.
1:20:27
So like Metro Tech is an EDC land lease, some of the sites in Times Square EDC land lease, and then some that we actively manage.
1:20:37
So the Brooklyn Army Terminal, Hunts Point are examples of those.
1:20:43
There are then sales of land or long term leases with upfront payments.
1:20:52
So in order for EDC to function as an entity, some substantial portion of those funds come to EDC.
1:21:02
So that is in part the way that we close the gap on the funding of the ferries, just as an example.
1:21:09
So that is typically a conversation with the Office of Management and Budget when we have a sale or a long term lease with an upfront payment about how much just goes in the Citi Fund and how much goes to Fund EDC.
1:21:24
So that's why you have some variability from one year to the next.
Amanda Farías
1:21:28
Got it.
1:21:29
And has there been a net decline in any income over the years for EDC?
Andrew Kimball
1:21:35
No, I wouldn't say that.
1:21:37
Every year is a little bit different.
1:21:40
Not every year do we have a big sale or upfront lease payment.
Amanda Farías
1:21:44
Sure.