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| Why N.Y.C.’s Future May Hinge on Businesses Outside Manhattan | Why N.Y.C.’s Future May Hinge on Businesses Outside Manhattan |
| (3 days later) | |
| When the coronavirus outbreak crippled New York City’s economy, it not only emptied the streets and office towers in Manhattan. | When the coronavirus outbreak crippled New York City’s economy, it not only emptied the streets and office towers in Manhattan. |
| It also devastated dozens of small business districts across the city, many located far from tourist and commuter hubs. | It also devastated dozens of small business districts across the city, many located far from tourist and commuter hubs. |
| The districts have served as a support network for mom-and-pop stores and restaurants, and have brought jobs, services and economic development to neighborhoods, helping New York recover from the great recession and fueling the boom it was experiencing before the pandemic. | The districts have served as a support network for mom-and-pop stores and restaurants, and have brought jobs, services and economic development to neighborhoods, helping New York recover from the great recession and fueling the boom it was experiencing before the pandemic. |
| Now, many of these commercial corridors face daunting challenges as their foot traffic has dwindled, and many stores, restaurants and other businesses are struggling to pay rent and keep workers employed. | Now, many of these commercial corridors face daunting challenges as their foot traffic has dwindled, and many stores, restaurants and other businesses are struggling to pay rent and keep workers employed. |
| The recovery of the local economy will be shaped by how these small business districts rebound just as much as by how larger destinations like Midtown and Lower Manhattan — the city’s commercial centers — do, business leaders and economic experts say. | The recovery of the local economy will be shaped by how these small business districts rebound just as much as by how larger destinations like Midtown and Lower Manhattan — the city’s commercial centers — do, business leaders and economic experts say. |
| The four boroughs outside of Manhattan have increasingly played a crucial role in the city’s expanding economy. Over half of the 482,728 private-sector jobs created in the city from 2014 to 2019, or 247,991 of those jobs, were based in Brooklyn, Queens, the Bronx and Staten Island, according to state labor data. | The four boroughs outside of Manhattan have increasingly played a crucial role in the city’s expanding economy. Over half of the 482,728 private-sector jobs created in the city from 2014 to 2019, or 247,991 of those jobs, were based in Brooklyn, Queens, the Bronx and Staten Island, according to state labor data. |
| Brooklyn outpaced every other borough during that period. One in five jobs in Brooklyn has been created since 2014, compared with one in 10 jobs in Manhattan. | Brooklyn outpaced every other borough during that period. One in five jobs in Brooklyn has been created since 2014, compared with one in 10 jobs in Manhattan. |
| In recent months, many businesses have reopened in Downtown Brooklyn, including a shopping strip on Fulton Street and DeKalb Market Hall, the borough’s largest food hall, which has created an open-air market with vendors serving customers on the sidewalk. | In recent months, many businesses have reopened in Downtown Brooklyn, including a shopping strip on Fulton Street and DeKalb Market Hall, the borough’s largest food hall, which has created an open-air market with vendors serving customers on the sidewalk. |
| But foot traffic is still down by more than half, to 1.5 million pedestrians in July compared with 3.4 million in July of last year, said Regina Myer, president of the Downtown Brooklyn Partnership, an economic development group. | But foot traffic is still down by more than half, to 1.5 million pedestrians in July compared with 3.4 million in July of last year, said Regina Myer, president of the Downtown Brooklyn Partnership, an economic development group. |
| “It’s one of the key areas of the city that needs to bounce back,” she said. | “It’s one of the key areas of the city that needs to bounce back,” she said. |
| In the Norwood neighborhood in the Bronx, storefront businesses owe thousands of dollars in back rent and many face the threat of eviction, said Jennifer Tausig, executive director of the Jerome Gun Hill Business Improvement District, which has drafted a form letter to help them negotiate with their landlords. It also started a free delivery service so stores and restaurants could reach more customers. | In the Norwood neighborhood in the Bronx, storefront businesses owe thousands of dollars in back rent and many face the threat of eviction, said Jennifer Tausig, executive director of the Jerome Gun Hill Business Improvement District, which has drafted a form letter to help them negotiate with their landlords. It also started a free delivery service so stores and restaurants could reach more customers. |
| In Queens, only 5 to 10 percent of the tenants in office buildings in Long Island City have returned, and many museums and cultural institutions remain shuttered, leaving local restaurants and stores with few customers, said Elizabeth Lusskin, the president of the Long Island City Partnership, also an economic development group. | In Queens, only 5 to 10 percent of the tenants in office buildings in Long Island City have returned, and many museums and cultural institutions remain shuttered, leaving local restaurants and stores with few customers, said Elizabeth Lusskin, the president of the Long Island City Partnership, also an economic development group. |
| “There are signs of life, but we’re not off life support,” Ms. Lusskin said. “We’re starting to see some smaller businesses close. The more commercial the area, the more stress they’re under.” | “There are signs of life, but we’re not off life support,” Ms. Lusskin said. “We’re starting to see some smaller businesses close. The more commercial the area, the more stress they’re under.” |
| Citywide, business improvement districts spent more than $167 million annually on local neighborhood and business services, according to a city report for the recent fiscal year. They include providing marketing help to small businesses, creating public spaces, picking up street trash and holding events to attract visitors. | Citywide, business improvement districts spent more than $167 million annually on local neighborhood and business services, according to a city report for the recent fiscal year. They include providing marketing help to small businesses, creating public spaces, picking up street trash and holding events to attract visitors. |
| The New York City Business Improvement District Association, which represents 93,000 businesses in 76 neighborhoods, has warned that many storefront retailers, service providers and restaurants entrepreneurs are “grappling with health concerns, operational challenges and social unrest in their beloved neighborhoods, all of which make recovery seem like an impossible dream.” | The New York City Business Improvement District Association, which represents 93,000 businesses in 76 neighborhoods, has warned that many storefront retailers, service providers and restaurants entrepreneurs are “grappling with health concerns, operational challenges and social unrest in their beloved neighborhoods, all of which make recovery seem like an impossible dream.” |
| The association has sought help from the city and state, including rent and mortgage relief for small businesses, less burdensome regulations, and a point person in City Hall to oversee neighborhood business recovery efforts. | The association has sought help from the city and state, including rent and mortgage relief for small businesses, less burdensome regulations, and a point person in City Hall to oversee neighborhood business recovery efforts. |
| Jonathan Bowles, the executive director of the Center for an Urban Future, a nonprofit research and policy organization, said many commercial neighborhoods had suffered the city’s worst economic losses. | Jonathan Bowles, the executive director of the Center for an Urban Future, a nonprofit research and policy organization, said many commercial neighborhoods had suffered the city’s worst economic losses. |
| “The restaurants and retailers in these neighborhoods have really hit the losing trifecta,” he said. “Office workers haven’t come back. Tourists are not coming. And many local residents have decamped to their second homes.” | “The restaurants and retailers in these neighborhoods have really hit the losing trifecta,” he said. “Office workers haven’t come back. Tourists are not coming. And many local residents have decamped to their second homes.” |
| City officials said they were reviewing the association’s request and had provided business districts with millions of free face masks and connected them with resources to help their recovery. | City officials said they were reviewing the association’s request and had provided business districts with millions of free face masks and connected them with resources to help their recovery. |
| “Our small businesses are the core of New York City’s economy and we have worked tirelessly to lift them up and support them throughout the pandemic,” Julia Arredondo, a spokeswoman for Mayor Bill de Blasio, said. | “Our small businesses are the core of New York City’s economy and we have worked tirelessly to lift them up and support them throughout the pandemic,” Julia Arredondo, a spokeswoman for Mayor Bill de Blasio, said. |
| The pandemic has largely wiped out the vibrant culture of stores, restaurants, bars and nightlife that is a hallmark of many business districts. As a result of the virus, roughly one-third of the city’s 240,000 small businesses now face extinction. | The pandemic has largely wiped out the vibrant culture of stores, restaurants, bars and nightlife that is a hallmark of many business districts. As a result of the virus, roughly one-third of the city’s 240,000 small businesses now face extinction. |
| “New York City is in trouble if it does not have all its storefront life,” said Rachel Meltzer, an associate professor of urban policy at the New School in Manhattan. “That’s part of the culture, that’s why people live here, that’s why they pay the high prices.” | “New York City is in trouble if it does not have all its storefront life,” said Rachel Meltzer, an associate professor of urban policy at the New School in Manhattan. “That’s part of the culture, that’s why people live here, that’s why they pay the high prices.” |
| Still, Ms. Meltzer expects business districts to eventually rebound, perhaps emerging stronger than before if commercial rents drop and attract a wider range of tenants. | Still, Ms. Meltzer expects business districts to eventually rebound, perhaps emerging stronger than before if commercial rents drop and attract a wider range of tenants. |
| Updated August 27, 2020 | |
| Lower Manhattan, a financial hub and the home of Wall Street, was not only rebuilt after the Sept. 11, 2001, terror attacks, but it also attracted new residential development. The neighborhood has grown to 64,000 residents, nearly three times more than in 2001, and more than 306,000 workers. | Lower Manhattan, a financial hub and the home of Wall Street, was not only rebuilt after the Sept. 11, 2001, terror attacks, but it also attracted new residential development. The neighborhood has grown to 64,000 residents, nearly three times more than in 2001, and more than 306,000 workers. |
| “One of the lessons is recovery takes a while,” said Jessica Lappin, president of the Alliance for Downtown New York. “We have been knocked down, and we did rebound even if it was hard and it took many years.” | “One of the lessons is recovery takes a while,” said Jessica Lappin, president of the Alliance for Downtown New York. “We have been knocked down, and we did rebound even if it was hard and it took many years.” |
| During the pandemic, the alliance has raised $800,000 for grants for restaurants and stores to pay their rents or leases. It has also partnered with a company, BentoBox, to provide a free online-ordering system to restaurants in response to complaints about the fees charged by other services. | During the pandemic, the alliance has raised $800,000 for grants for restaurants and stores to pay their rents or leases. It has also partnered with a company, BentoBox, to provide a free online-ordering system to restaurants in response to complaints about the fees charged by other services. |
| Still, the coronavirus has already set back efforts to expand New York City’s traditional business center beyond Midtown Manhattan to former manufacturing and industrial neighborhoods, including Flatiron and Hudson Square to the south. | Still, the coronavirus has already set back efforts to expand New York City’s traditional business center beyond Midtown Manhattan to former manufacturing and industrial neighborhoods, including Flatiron and Hudson Square to the south. |
| In Flatiron, the thinner crowds can be measured, in part, by its trash: 9,339 bags of garbage were collected from street corners in July, down 32 percent from 15,905 bags the same month the year before, according to the business improvement district. About 10 to 15 percent of tenants have returned to office buildings, and just over half the restaurants have reopened for takeout and outdoor dining. | In Flatiron, the thinner crowds can be measured, in part, by its trash: 9,339 bags of garbage were collected from street corners in July, down 32 percent from 15,905 bags the same month the year before, according to the business improvement district. About 10 to 15 percent of tenants have returned to office buildings, and just over half the restaurants have reopened for takeout and outdoor dining. |
| “It’s going to be a long recovery with gradual and incremental improvements, said James Mettham, executive director of the Flatiron/23rd Street Partnership, which runs the business improvement district. | “It’s going to be a long recovery with gradual and incremental improvements, said James Mettham, executive director of the Flatiron/23rd Street Partnership, which runs the business improvement district. |
| In Hudson Square, the Art Deco buildings remain largely empty as most commuters work from home. Foot traffic has plunged by 71 percent to an average of 20,000 people a day from 70,000 people a day before the pandemic. | In Hudson Square, the Art Deco buildings remain largely empty as most commuters work from home. Foot traffic has plunged by 71 percent to an average of 20,000 people a day from 70,000 people a day before the pandemic. |
| The Hudson Square Business Improvement District, which has led the efforts to transform the neighborhood from an industrial outpost, is spending $500,000 in pandemic recovery efforts, including building stylish outdoor restaurant seating in converted parking spots. | The Hudson Square Business Improvement District, which has led the efforts to transform the neighborhood from an industrial outpost, is spending $500,000 in pandemic recovery efforts, including building stylish outdoor restaurant seating in converted parking spots. |
| “We can’t actually bring people back,” said Ellen Baer, its president and chief executive. “What we can do is say this is a welcoming place to be.” | “We can’t actually bring people back,” said Ellen Baer, its president and chief executive. “What we can do is say this is a welcoming place to be.” |
| Phil Mouquinho, 70, opened an Italian restaurant in Hudson Square four decades ago and has stuck it out through recessions, the Sept. 11 attacks and construction next door. But the pandemic has been the hardest, he said, because he does not know what will happen next. | Phil Mouquinho, 70, opened an Italian restaurant in Hudson Square four decades ago and has stuck it out through recessions, the Sept. 11 attacks and construction next door. But the pandemic has been the hardest, he said, because he does not know what will happen next. |
| “It’s the uncertainty,” he said. “It’s the fact that it’s an ever-changing landscape.” | “It’s the uncertainty,” he said. “It’s the fact that it’s an ever-changing landscape.” |
| In Downtown Brooklyn, there is also uncertainty about when the neighborhood will once again be packed with office workers, students, commuters, shoppers and visitors. | In Downtown Brooklyn, there is also uncertainty about when the neighborhood will once again be packed with office workers, students, commuters, shoppers and visitors. |
| Livingston Manor, a popular neighborhood bar that opened in 2014, has seen its business drop more than 80 percent. Outdoor dining has not helped much, said Matthew Roff, a co-owner, because the bar’s patio only fits four to five people at a time with social distancing requirements. | Livingston Manor, a popular neighborhood bar that opened in 2014, has seen its business drop more than 80 percent. Outdoor dining has not helped much, said Matthew Roff, a co-owner, because the bar’s patio only fits four to five people at a time with social distancing requirements. |
| “We’re still here, but if this continues, who wants to stay in business if you can only sell to 50 people a day?” he said. “Nobody’s really making a dollar.” | “We’re still here, but if this continues, who wants to stay in business if you can only sell to 50 people a day?” he said. “Nobody’s really making a dollar.” |