Howard Beach Fights Census-Related Cuts by Tommy Fernandez - Crain's New York Business

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Queens Locals Dispute 7% Drop in Population Tally; Fear Loss of Services, Funds

Irate Howard Beach activists and politicians are marshaling their forces to challenge 2010 Census Bureau figures that they say significantly undercount the population of the crowded Queens neighborhood and as a result will cost residents vital government resources and clout.

The latest census data, released in March, show that Howard Beach had a population of 26,148 in 2010—a drop of nearly 2,000, or 7%, from 2000 levels. Longtime residents say that statistic flies in the face of what they've seen in the area over the past decade. The neighborhood has experienced explosive growth, as more Latin-Americans and Asians have moved in and as a development boom led to the replacement of many single-family houses with multiunit buildings.

“These census figures are significantly skewed,” said activist David Quintana, a member of Community Board 10, which serves Howard Beach and nearby neighborhoods including Ozone Park and Richmond Hill. “There are many more people who live in this area than the numbers show.”

Much is at stake. Census figures help dictate everything from the allocation of federal aid for social services to city officials' plans for new schools and bus routes.

Community services are already suffering in Howard Beach. Recently, the cash-strapped Police Athletic League had to close down a basketball league there. Locals fear that this loss is only the beginning.

“The census undercount will have a major impact on the community,” said state Assemblyman Michael Miller, D-Woodhaven.

To be sure, census takers faced a number of challenges, particularly among immigrant populations. Tenants living in housing illegally were discouraged by their landlords from talking to outsiders. Undocumented immigrants were terrified that any information they passed on to surveyors would lead to visits from U.S. Immigration and Customs Enforcement officers.

“A lot of people just didn't want to be counted,” said Mr. Quintana. “They didn't appreciate the significance of this count.”

GOOD NUMBERS

An official from the Census Bureau's New York Regional Office, however, insisted in a statement issued to Crain's that it “actually had a very good count for Howard Beach.”

He noted that the agency received good mail response in the area and that every attempt was made to find and tally those individuals who did not return a form but were willing to be counted.

“We made a strong effort to get a count from households that did not and would not respond to our census enumerators,” said the official. He also noted that the campaign included speaking to knowledgeable neighbors in the area as well as working with building management companies.

“Unfortunately,” wrote the official, “we cannot make up information for people who refuse to be counted or cooperate.”

A version of this article appeared in the May 9, 2011 print issue of Crain's New York Business.

Unions Squeeze Walmart Partners - by Daniel Massey Crain's New York Business

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Opponents of Walmart plan to ratchet up the pressure on heavyweight developer The Related Companies this week, in a concerted campaign to show the city's real estate community that there's a potential cost to doing business with the nation's biggest retailer.

Related has had contact with Walmart about leasing a site at its 650,000-square-foot Gateway II shopping center in East New York, Brooklyn, that already received the City Council's approval, enraging those unions, small storeowners and council members that oppose the retailer's entry into the city. Opponents hope to persuade Walmart's local partners—with threats of pickets outside their headquarters or homes and other actions—that doing business with the retailer will damage their future council dealings.

“The Walmarts of the world may think they can ignore us, but the Relateds of the world can't,” state Sen. Diane Savino, D-Staten Island, told Crain's last month. “These are guys who want to develop in other places in the city. They could find that their relationship with Walmart may permanently damage their relationship with the city.”

Opponents believe they have leverage over Related in part because it is one of 29 firms that have expressed interest in redeveloping Willets Point, a run-down section of northeast Queens slated to be remade with retail outlets, housing, a hotel and office space. The city will issue a request for proposals for the redevelopment in April.

On Monday, three elected officials who represent the Willets Point area—Councilwoman Julissa Ferreras, state Sen. José Peralta and Assemblyman Francisco Moya—will send a letter to Related Chief Executive Stephen Ross, pressuring him to shun Walmart.

“We have a long working relationship together, creating new economic opportunities for New Yorkers and building more vibrant neighborhoods, and we hope to continue that strong partnership moving forward, perhaps at Willets Point,” reads the letter, a copy of which was provided to Crain's by the Walmart Free NYC coalition. “That's why we're urging you not to do business with Walmart at Gateway II or any other New York City location.”

Mr. Ross said Walmart has expressed interest in the Gateway II site, but the two sides are not yet negotiating a lease. Related officials were so upset that labor engineered the defeat of its Kingsbridge Armory mall in late 2009 that it is believed to be willing to buck the council this time. “We're not going to back down, and we're going to do what's good for the city of New York in the long term,” Mr. Ross said.

“Very dangerous”

Other industry leaders denounced the opponents' strategy, saying it could send an anti-business message to companies that are considering locating or expanding in the city.

Robert Knakal, chairman of Massey Knakal Realty Services, says he has several as-of-right sites that he's trying to market to Walmart. “It gets very dangerous when politicians start saying who you can rent space to and who you can't,” he said.

Mr. Knakal added that some developers and landlords might be concerned about backlash over dealing with Walmart, but that “ultimately if you believe something is best for the city, you do it.”

While the council does not have a say in which developer the city chooses for Willets Point, its Queens members will have to approve the sale of land to the winning firm. Those members won't weigh in until the developer is chosen, but the council could presumably use the vote as a pressure point.

A majority of council members oppose Walmart's entry into the city, arguing that it would drive down wages of unionized workers and hurt small businesses. As many as 20 council members are expected to sign a similar anti-Walmart letter to Mr. Ross. Plans are in the works to bring a group of former Walmart workers to Mr. Ross to talk about their experiences with the retailer. Other actions against Related are also being planned, including demonstrations outside board members' homes and the firm's Columbus Circle headquarters.

Sending a message

“They need to feel like, 'You know what, we don't need to be the people who bring in Walmart, it's just not worth it,' ” said Jon Kest, director of New York Communities for Change and a member of Walmart Free NYC. “We want to drive them to that point.”

By pressuring the firm on Willets Point, opponents hope to send a message to other developers, landlords and brokers that dealing with Walmart isn't worth the risk, especially when unionized companies like ShopRite are waiting in the wings, willing to open stores.

Vornado, the landlord of Walmart's North Bergen, N.J., store, tried to team up with the retailer in 2005 in Rego Park, Queens, but the deal fell apart amid heavy opposition. The developer would also become a target if it started talking to Walmart about New York City again.

Related's flirtation with Walmart didn't hurt it last week, when it was selected by the city as part of a team to build nearly 1,000 affordable-housing units at Hunters Point in Queens. Some took that decision as a sign that Related's connection to Walmart would not hurt its chances to win big city projects. But the council didn't have a say in the pick.

Walmart is looking at sites controlled not just by major developers, but also by smaller landlords that may not have other business before the council, said Director of Community Affairs Steven Restivo.

Kenneth Fisher, a partner at Cozen O'Connor who deals with land-use issues and a former councilman, said that the council should ideally base decisions on the land-use impacts of projects.

“Is it some form of extortion, saying, 'I won't give you my government approval if you are doing business with a third party?' ” he asked. “If I were Speaker [Christine] Quinn, I'd ask my lawyers to look at it pretty carefully before encouraging members to go down that road. I think there's potentially some exposure there, though any prosecutor would be reluctant to stick their nose in.”

Jeremy Smerd contributed to this story.

Worksman Cycles - Queens Bike Maker Seeks Big Leg Up by Hilary Potkewitz- Crain's New York Business

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Ever since the city's Department of Transportation started asking for proposals for a citywide bike-share program in November, a small bike factory in Queens has been trying to get noticed.

“It's a grassroots effort at this point, but we're trying to create as much awareness as we can with local businesses, the Department of Transportation and the Mayor's Office,” says Wayne Sosin, president of Worksman Cycles. In fact, the company has been quietly wheeling out heavy-duty bicycles and tricycles in Ozone Park since the 1890s.

“No other city has the opportunity to source their bicycles from their own local bike manufacturer,” Mr. Sosin adds, noting that Worksman bikes are already used in several smaller U.S. cities' bike-share programs. “If that didn't happen in New York, it would be tragic.”

A contract for 10,000 or more bikes for New York City's program would be a huge boost for the small company, and would mean hiring more welders, painters, assemblers and packers for the Queens plant. That's a fact not lost on local politicians. Nearly all of Worksman's employees live in the five boroughs.

CITY SUPPORT

“Those jobs are important not just for that one business, but for the local economy,” said City Councilman Eric Ulrich, whose district includes Ozone Park. “If the city is serious about keeping and creating local jobs throughout the boroughs, then it's going to do everything it can to support small businesses currently operating here.”

The DOT is accepting bids until Feb. 16 for the bike program, which would involve setting up more than 600 bike stations around the city, equipped with high-tech locks, and more than 10,000 GPS-equipped bikes. The request for proposals dictates that a private company will bear all costs of the program, slated for a 2012 launch, and share any profits with the city.

Modeled on similar bike programs in Europe, the New York bike-share system will be the largest in the U.S. Naturally, the companies that run programs in other cities are eyeing the New York contract—but none manufacture their bikes in the U.S.

Mr. Sosin's challenge is to be considered as a possible supplier. It's proving an uphill climb.

NOT CHOOSING SIDES

“We love Worksman, and it's super cool to have the oldest bike manufacturer in the country right here in Queens,” said Caroline Samponaro, director of bicycle advocacy for Transportation Alternatives, a transportation policy think tank. “I've mentioned them to all the [bike-share program] operators I've spoken to, but my role is advocating for better mobility options at less cost, not in picking sides.”

For nearly a century, Worksman bikes were primarily used in auto and other heavy industries to help employees get around in sprawling factories. When those plants began closing up, Worksman was hit hard.

The company has shifted its emphasis to recreational bikes for everything from old-age communities to urban bike-share programs. Its new line of commuter bikes costs $300 to $600, slightly more than foreign-made rivals. Last year, sales were up 10% over 2009 levels. The company's largest single order in recent years was 1,700 bikes for a Central American postal service.

The problem for Worksman's attempt to get in on the big New York contract is that the bike-share industry is dominated by BIXI, a Canadian outfit that runs such programs in Montreal, London, Boston and elsewhere. Its bikes are manufactured in Quebec by Cycles Devinci, which last year received a sizable grant from the Canadian government to expand its assembly line. Denver, Chicago and Louisville, Ky., use Asian-made Trek bikes.

DOT declined to give details on proposals that have been submitted, but it's safe to assume that major players like BIXI are aggressively bidding for the contract, said Transportation Alternatives.

That prospect concerned Mr. Ulrich. “I think that preferential treatment absolutely should be given to local businesses like this bike manufacturer,” he said. “Why should we be giving money to a Canadian company when we can create more jobs right here?”

Jamaica Leaders Hope Wonder Bread Successor Will Boost Downtown by Keith Honen - Crain's New York Business

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With Hostess Brands Inc.'s decision last month to shutter its out-of-date Wonder Bread factory in Queens, some 200 workers are about to lose their jobs, and another piece of the city's manufacturing sector will slip away.

But for the surrounding neighborhood of Jamaica, the closure could yet have a positive impact, as it frees up a 100,000-square-foot factory in the heart of one of the largest commercial hubs in the borough. The change comes at a time when local business leaders are seeking to refocus the downtown area.

“The bakery has served the region for 125 years, basing its success on the site's proximity to mass transit and access to a vast market for its products,'' says Carlisle Towery, president of the Greater Jamaica Development Corp. “[The site's availability] presents a tremendous opportunity.”

The area's existing shopping district, centered mostly along Jamaica and Hillside avenues, features both ethnic shops and national chain stores and restaurants. Business leaders hope to add a wider variety of stores and entertainment to attract patrons from the borough's most powerful economic engine: John F. Kennedy International Airport. The area offers a number of transportation links, including the AirTrain, but relatively little that can persuade the flight attendants, pilots and tourists passing through Jamaica to stop and spend some money.

Jack Friedman, executive vice president of the Queens Chamber of Commerce, says his group is focused on cashing in on the city's expanding tourism industry, and Jamaica is one area where that's a possibility. A massive rezoning three years ago helped set the stage by green-lighting larger commercial towers and hotels around the AirTrain station.

A spokeswoman from Hostess Brands say it is too early to determine what business will succeed Wonder Bread; the company will begin the process of selling the facility after its planned Jan. 7 shutdown. At this point, she notes, the company is concentrating on assisting workers in finding jobs or accessing unemployment benefits. She adds that the popular Wonder Bread outlet store formerly based out of the factory will be kept open; it will move to nearby a storefront and will be stocked by the closest factories, in Pennsylvania and New Jersey.

THE IMPOSSIBLE DREAM?

Meanwhile, not everyone is convinced that Jamaica is ready for a star turn with tourists.

“I don't see people hopping off the AirTrain or the Van Wyck Expressway to come here,'' says City Councilman Leroy Comrie, who represents Jamaica.

He believes that city officials would do better to seek another food manufacturer for the Wonder Bread site—perhaps even one that would be involved in high-end food catering for JFK or one of the airlines operating there.

The odds against food makers finding the amount of space they need in the city at a price they can afford are increasingly long. Earlier this year, Sabra Dipping Co. sold its hummus factory in Astoria, Queens, after it decided to move production to a bigger space in Richmond, Va. Old London Foods' melba toast factory and the Stella D'oro bakery—both in the Bronx—were recently shut down as the companies moved operations to larger factories in North Carolina and Ohio, respectively.

Downtown Jamaica isn't the only area in the borough trying to tap into JFK's rich tourist market. Aqueduct Racetrack in nearby Ozone Park hopes to lure tourists, too, as new operator Genting New York begins a $1.3 billion upgrade to the track and the construction of a racino. The venue, located just a few blocks from the airport and surrounding hotels, will feature video slot machines, a food court and a bar with performance space.

Spurned Aqueduct Winner Sues to Get its Job Back by Amanda Fung - Crain's New York Business

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Here comes AEG again, asking a state judge to let it sue the governor and other state politicos and win back the license to turn the Queens race track into a gambling mecca.

A consortium of bidders that won and then lost a contest to develop a racino at the Aqueduct horse track in Queens wants to sue the state and win the job back.

Aqueduct Entertainment Group has asked a state Supreme Court judge for permission to sue the New York State Division of Lottery and other elected officials, including Gov. David Paterson. A decision from the judge could come as soon as Tuesday.

AEG, which earlier this year had won the previous round of bidding to operate and develop an Aqueduct racino, was subsequently denied a gaming license and a new bidding process was launched by the Lottery Division two months ago.
AEG and its chairman, Richard Mays, in their court filing cite “injury they presently suffer as a result of the arbitrary, capricious, unauthorized and discriminatory actions taken against them by Lottery, Gov. David Paterson, Senate President Malcolm Smith and Assembly Speaker Sheldon Silver.”

A Lottery Division spokeswoman declined to comment, noting that the Lottery Division has not been served. “We have not seen the lawsuit,” she said.

“We seek a temporary restraining order until we have a hearing or trial,” said Daryl Davis, a partner at Doman Davis, the law firm representing AEG. “We did the research, our claims are valid, and I expect the judge to grant our application.”

The lawsuit was filed with the state Supreme Court in Schenectady County and claims that the gambling license rules were changed after AEG was selected as the winner of the lucrative Aqueduct contract. Therefore the Lottery Division's decision to declare AEG ineligible for a gaming license had “no rational basis, was arbitrary and capricious, and was an abuse of discretion.”

Separately, the botched AEG selection is still under investigation by the state's inspector general office. However, AEG's attorney and the court filing claim: “Absolutely no one associated with AEG has been accused of any wrongdoing since they did nothing improper.”

Meanwhile, the Lottery Division is expected to recommend a new winning bid on Aug. 3. Last week, the Lottery Division disqualified SL Green and Penn National Gaming, formerly seen as frontrunners in winning the latest bid. The disqualifications left one bidder, Genting New York, a relatively unknown entity that is part of a giant Malaysian company which operates casinos across the country, to win the race. Genting's proposal is still being vetted by the Lottery Division.

If the judge rules in favor of AEG, the latest contest could well be halted. AEG filed the suit so it can move forward with its plans to build the Aqueduct facility, said Mr. Davis, adding that the company will also pay the $300 million upfront licensing fee that it was required to pay in the earlier contract.

“They are asking to be restored as the rightful contract winner; they want to break ground and do what they were ordered to do,” he said. “The opportunity was unlawfully taken away from them.”

New York State Betting on OTB by Daniel Massey - Crain's New York Business

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The state reached a deal to take over the city’s Off-Track Betting Corp. on Friday, just two days before Mayor Michael Bloomberg planned to shutter the operation that employs 1,500 workers across the five boroughs.

“There is a deal,” said Gov. David Paterson at a news conference at his office in New York City. “People should come back to work on Sunday or Monday.”

Details of the agreement are still being worked out, but the governor said the state will pass legislation Monday that will create a public benefit corporation to run the OTB operation. The transfer to the state will be completed within 90 days.

The deal saves 1,500 jobs at the 61 OTB betting parlors across the city.

“If OTB would have closed, everybody would have lost,” said Lillian Roberts, executive director of District Council 37.

The city was on track to begin running the financially troubled OTB branches at a loss this month, and the mayor threatened to shut them down if an agreement with the state could not be reached.

“We're not going to subsidize it,” the mayor said in his weekly radio address Friday morning. “I have to make a choice: People who work in a bookie operation, or cops who walk our streets? People who work in a bookie operation, or teachers who teach in our classrooms? We're not going to lay off cops and firefighters and teachers to support this.”

The state will immediately begin an overhaul of OTB to improve its profitability by eliminating duplicate functions between the city’s OTB, the New York Racing Association and the five other OTB branches around the state. The headquarters of OTB will be moved from Times Square to Aqueduct Racetrack in Ozone Park, Queens, saving $5 million a year in rent.

The governor also announced the nomination of State Sen. John Sabini, D-Queens, as chairman of the New York State Racing and Wagering Board. Upon confirmation, Mr. Sabini, who had been running for re-election, will step down from his Senate seat. The development virtually assures City Councilman Hiram Monserrate, D-Queens, will win the seat this fall.