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M-CORE projects and their long-term tax impact on New York City

0:32:05

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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.

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