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M-CORE projects and their long-term tax impact on New York City
0:32:05
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65 sec
Council Member Farías discusses the tax impact of M-CORE (Manhattan Core) projects, highlighting the significant net positive impact projected over a 20-year period. Andrew Kimball explains the timeline for realizing tax revenues from these projects and the process of demonstrating positive returns to OMB.
- M-CORE projects have a projected tax benefit of $1.3 billion over 20 years, with a net positive impact of about $60 million per year
- The realization of tax revenues occurs years after the initial investment and capital work
- Kimball uses the Water Street project as an example of the timeline for capital work, occupancy, and full tax revenue generation
- EDC must demonstrate to OMB that the projected tax revenue exceeds the initial investment
Amanda Farías
0:32:05
Thank you.
0:32:06
So for example, thank you for that response, the three MCORE projects announced to have a tax benefit cost of a hundred and 42,000,000 but a total tax benefit of 1,300,000,000.0 over a twenty year period.
0:32:19
This works out to be a net positive impact of about 60,000,000 per year.
0:32:24
Do we know where that shows up in the city's budget?
Andrew Kimball
0:32:28
Again, these would be years in advance.
0:32:31
So as an example, there's a project on Water Street, some of the capital work has been done on it already that's resulting from this program, some is to come.
0:32:41
They will then finish that capital work, they will lease the building, you know you're looking at full occupancy within a few years and then you get full tax revenue.
0:32:51
Does OMB count those tax revenues three or four or five years out?
0:32:54
I'm not sure the answer to that question.
0:32:56
But certainly we have to demonstrate to them that as positive tax revenue that exceeds the initial investment.
0:33:02
So you know the numbers that you put out about the value of the incentive versus the projected return, I think it was 10 times value.