This seminar has offered me a lot of insight into the problems facing New York, though I have noticed these problems before but this class made me pay them more mind. I learned a lot about the housing and rent crisis happening in NY and through directly speaking with store owners I was able to gain first hand accounts of people who were struggling under the tight grip of rising rents and property taxes. Most importantly, this course showed me just how little power and representation the community has over decisions made that directly affect them and their businesses. Community boards are rendered useless, and people are displaced from their lives. It’s important for people to get involved with their government to work towards a solution. I learned about civic tech and how much it can benefit people and I think back to the speakers at Civic Hall who seemed thrilled to be able to help as many people as they could with their technology. I entered this course with a very bleak outlook on New York and the many problems that it faces, however this course has provided me with a glimmer of hope in terms of the future.
Author: Diana Kapkayeva
Sustaining Existing Small Businesses
Rising rents in New York City are now not only affecting residential parts of various neighborhoods, but it is also affecting small businesses that are important to the history and character of New York. When property tax rates increase for landlords, they tend to place this burden mainly on the shoulders of small business owners who rent their spaces, resulting in tremendous rent increases when the tenants leases expire. For many small business owners, this eliminates any and all profit to the point where they are unable to support their business and are required to close down the business that they may have spent almost their entire lives nourishing. The SBJSA or the Small Business Jobs Survival Act is aiming to help long time businesses survive by giving rights of renewal to the business tenant when their lease expires and it “levels the playing field” for landlords and business owners by giving the tenants the same rights as landlords in negotiating fair lease terms. The act also says that if the two parties cannot agree, the matter goes to a procedure of arbitration in which a dispute is submitted to an arbitrator who make a binding decision on the dispute. I think that this plan is effective in allowing for more control to be given to small business owners over their rent regulations and the process of arbitration would provide for more fair grounds in the event that the landlords and renters cannot come to any sort of agreement. I think that another thing that should be targeted is the tax incentive that landlords have for refusing to renew leases and having empty space. These landlords are able to use the spaces left empty after a business closes down as a tax write off, and so they’d rather have the business close down. Something should be done to lower or completely diminish this ability of landlords to benefit off of having empty space present on their properties.
Three Questions:
Are a majority of your customers locals, or are they from outside of the neighborhood?
Has the rate of increase in rent been affecting your business profits, or the ability for your business to survive? Have you had to cut back on certain portions of your business in order to make ends meet?
How do you handle big chain brands that move into the neighborhood? Do you employ any tactics to keep customers coming to your store?
I think that this debate about how local shopping streets will change overtime has much to do with similar ideas expressed in conversations dealing with ethnic families moving out of living spaces in neighborhoods and the face of neighborhoods changing overtime. Local shopping streets in the past were comprised of lines of small businesses that provided local residents with every type of product that they needed or would need in the near future, and more. These shops were run by locals who knew the neighborhood and whose social interaction added to the charm and social fabric of these neighborhoods. These types of local shopping streets have since diminished and been replaced by big chain stores that have taken the the personal feeling out of shopping that small businesses work to preserve. They are also being replaced by the evolution of technology because it is becoming easier for people to eliminate the need to actually physically go to a store and buy items they need faster and more efficiently. The price of this efficiency, of course like in every human aspect that efficiency affects, is the loss of a human element. I think that the changing face of local shopping streets is completely inevitable because of how much technology is becoming interwoven with almost every aspect of our lives. I think that this issue relates back to the conversation the class had in the past where we discussed the meaning of diversity, and one point that was brought up was that even though the old fabric of the neighborhood becomes replaced, the “new” residents and new businesses become the diverse group of the future of the neighborhood, so to speak. The individual aspects that are seen as new and changing in the neighborhood will become the “old” aspects of the neighborhood in the future.
Silicon City exhibit and Civic Hall
The Silicon City exhibit definitely did a wonderful job in displaying the advancements of technology that we have seen involving computer and computer systems. We’ve come a long way from when IBM first created personalized general use computers technologically, and the technological systems get more and more improved each year. One of the things that were noted about the various images featured in the exhibit was the lack of female presence or female acknowledgment. Many of the images featured the team of computer engineers who were almost predominantly men at the time, or if there were women shown they were almost always unidentified. I found this extremely negative but attributed it to the time periods. Then of course, I stumbled upon Grace Hopper’s exhibit and was immediately impressed by her ambition as being one of the first programmers of the Harvard Mark I computers and she taught a new computer language to students called COBOL.
Civic Hall was very different from what i expected. I expected to see a more run down, and basic array of technological innovation. I was quite impressed by the various workers who seemed very enthusiastic and genuinely looking to improve the lives of the masses. The speakers put very much emphasis on the fact that they encouraged people who wanted to get into civic tech, they could do so by “identifying a problem, and working to find a solution”. This is important because it emphasizes that in its purest state, civic tech works to improve the lives of the many, rather than lead to an increase in profits or business. One of the speakers was a woman who created a website to help individuals who were getting any type of federal aid and help them arrange their finances in a matter in which their information and information regarding their situations were laid out for them.
Industry City
The “Innovation Lab” is a 7,700 square-foot facility for teaching classes based on prospective employment positions for the businesses that supported its construction. These labs were looking to be introduced in areas with a high population of immigrants that were lacking in formal education, and with high unemployment rates. The businesses would look to employ skilled workers but a majority of the neighbors were not skilled. These facilities would specifically target these workers, and teach them computer and entrepreneurial skills that would allow them to take up these positions. Offering more training helps locals qualify for higher paying jobs and the number of residents being displaced by more skilled newcomers should decrease.
The CEO of Industry City in Sunset Park, Andrew Kimball, is looking to put in place a one billion dollar redevelopment plan to transform the Sunset Park waterfront into a manufacturing and technology hub by creating thousands of new jobs. He claims that this project will create one of the largest centers for the “innovation economy” and one of New York’s biggest engines of job growth. Industry City’s zoning initially prohibited local development for retailers and hotels, but the new development proposal will have a “special innovation zoning district”, in which will be permitted the development of hotels, universities, conference centers, and retail chains. Developers use this method of having zoning rules bent in order to make for more profitable uses, and seek city aid on top of that. These projects are largely funded by public dollars.
Though they are trying to prevent residents from being displaced, this new economic activity definitely affects the popularity surrounding Industry City. The commercial rents rise in response to the popularity of the neighborhood, and this will lead to harassment on the part of property owners trying to get immigrants out of their rent stabilized apartments. They are attempting to bring Industry City up economically, and trying to prevent displacement and gentrification simultaneously, but it just won’t play along together well.
The growth of technological innovation encourages more creativity and idea development as well as backing from investors who are interested in seeing these ideas being fleshed out and brought to life. Given the rapid growth of technological innovation in New York City during the past couple of years, and how you have huge companies like Tumblr and Etsy being headquartered here, its encouraging other startups to touch base in New York and grow their company here. New York is “where entrepreneurs seek out the American Dream” and we’ve seen a major rise in the amount of startups ‘starting up’ in New York City because of inspiration from other successful startups that saw their beginnings in New York City. The benefits allow for more innovation in terms of ideas and encourage competition. People see that startups are having major successes in this City and so these people will be inspired to create new plans and companies to fulfill a purpose. Ideally, it will be one that’s beneficial to people, which allows us as a society to be better off.
New startups are “consciously engineered” in response to the corruption on Wall Street. They diversified New York City’s economy, and are not dependent on Wall Street’s backing. This diversified economy will no longer be dependent on financial institutions like major banks and investment banks, and this is a major issue to be dealing with considering how badly the 2008 collapse of some major banking institutions impacting the economy in New York City. Buying technology has gotten more inexpensive in the past few years, and more risks are being taken in light of this technologically innovated future that we are seeing develop.
Some benefits of the growth of technology innovation would be the efficiency that companies would be able to manage, and because of this efficiency, prices within the company can become cheaper. The quality can also be greatly controlled, and kept higher if technology provides for better conditions that are more manageable for owners.
If a specific sector grows due to technological innovation, and those people have very high paying jobs, a potential downside is that neighborhoods will then be faced with higher rents and higher housing prices in the area because of the growth in income of those who live there. Technological innovation can also erase the need for certain jobs and can displace workers.
Urban Economy
In “The New Geography of Jobs”, Enrico Moretti seems to attribute the ability of a city’s economy to the state of the rest of the city. He observes that those with more knowledge tend to live and work in more knowledge-based communities, and this clustering makes a city’s innovative economy more successful. This success makes more highly-skilled laborers come to the city, and it drives out unskilled-laborers. This creates quite a gap between the economic levels of cities, and Moretti points out further that this gap makes all other economic equalities stand out as a result. Moretti also observes that cities that have a growing number of innovative jobs were brought up by the multiplying factor, under which a few of these more-skilled and more creative jobs were taken, leading to an increase in the amount of jobs in that city as well as an increase in the total economy of that city in terms of salaries and wages earned. I agree with the notion that when one area fosters, another area suffers as a result, and the economic tides are constantly moving and changing.I think that i would be a techno-optimist if i was working for an are with a good economy, whereas id be a pessimist if I weren’t.
Affordable Housing Crisis
The current crisis in New York pertaining to affordable housing is an unfortunate one in that the people, who cannot afford it, are facing higher and higher rents every year. The system has failed to benefit people on the lower end of the economy, much like it usually does. The question then becomes, how do we mold the system to fit all the needs that are present in our society, rich and poor. The articles that we read this week discuss the actions of local governments and groups, as well as Mayor Bill De Blasio, in attempting to attend to problems with current affordable housing and dealing with the creation of more housing that is affordable. One of the articles, by Ethan Corey, discusses the tactics that the Crown Heights Tenant Union has used to make an impact on the system. One of the methods that they are using is to negotiate directly with landlords and make contract agreements in order to regulate rent increases in the future, protect tenants from being evicted prematurely, and to try to ensure that landlords will take care of their units in terms of maintenance and repair. I think that this is a step in the right direction, facing the landlord’s head on with negotiations, because I think that going directly to government officials is hopeless. I think it’s hopeless to do so because government officials try to make everyone happy in a system that is unable to do so because of the very nature of capitalism. I think that direct negotiations are more likely to persuade individual landlords in neighborhoods to satiate the needs of their tenants. Also, the collectiveness of programs like these, give the people more hope in their cause.
Building more affordable housing in a city with a limited amount of open space can lead to problems. The dense population creates overcrowding of public facilities, schools and transportation. The mayors plan to build more affordable housing simply beckons the question, where? Where do we put buildings that can support the large portion of the population that needs a place to live that is affordable? New York has increased in population and is becoming one of the most overcrowded cities, with apartment buildings being stuffed with tenants, and more people looking to move in. In this sense, I think that density bonuses are a plus because it will take a certain amount of space and utilize it to a large capacity by making taller buildings. On the other hand, building these very tall developments will offset the balance in certain neighborhoods that have mostly low-rise structures.
We, as a class, can create a website that outlines the projected outcome of some of the neighborhoods that are developing more affordable housing, creating projecting pricing guides. We can also come up with ways to target certain neighborhoods with over-bearing landlords, and develop grounds on which the people in this neighborhood could potentially negotiate with these landlords.
Coney Island
Museum
My favorite piece in the exhibit was the one pertaining to Via Verde in the South Bronx. It struck my attention because of how striking and intriguing the design of the buildings are, and I think that it gives the location a very artsy touch. Along with this, the buildings feature rooftop gardens which not only provide beauty and nature to a landscape that is lacking, but also provide tenants with access to healthy foods that may otherwise be too expensive or out of their reach completely for travel reasons. The Via Verde puts a modern spin on the old vision of public housing, and does so with a unique edge. I think that the improvements push people toward a positive and healthy life style.
Greenpoint-Williamsburg
The Community Board #1 area is made up of 176,937 people, 61 percent of which are white, 27 percent Hispanic, 6 percent Asian, 5 percent Black, and 1 percent of other race and ethnicities. The population by age stands at 23 percent of children and adolescents aged 0-17, 11 percent young adults ages 18-24, 40 percent of adults’ ages 25-44, 17 percent of people aged 45-64, and 9 percent aged 65 or more. The area has about 24 percent of foreign-born individuals. 30 percent of residents in Greenpoint and Williamsburg find themselves living below the federal poverty line, 7 percent face unemployment, and 47 percent face rent burden in this community. I think that the main issues faced by the people who live there now are poverty, safety, healthcare, community maintenance, and the need for more affordable housing.
Public Housing
I think that public housing is quite necessary for New York City because of the alarming increase in the price of rent for apartments, versus the stagnant increase in wages. It is becoming very difficult for many families in New York to earn a living without being constantly under the pressure of their living expense, and living paycheck to paycheck. Investing in new public housing projects would aid in meeting the ever-growing demand for apartments that are affordable. I have lived in public housing all my life, and I have seen the firsthand effects of what public housing can offer to families in need of assistance. My family was quite poor when they arrived in New York, and the public housing project in Coney Island offered us a place to live while we were trying to set up our lives here. The rent was fair enough, that we were able to go to school and work, and live without being in fear of getting evicted or raising rent prices that would overwhelm us. Over time, my parents have been able to save up, and we are looking for a new place to live. For many public housing projects, this was the original plan, to help families in need and later on they would be well off and able to find new and better accommodations. I think that it would be important to emphasize this factor in any new public housing built, it being temporary. My public housing would be as family friendly as possible, and I’d incorporate bright colors and modern structures to eliminate the dreariness that surrounds the idea of public housing in general. Families would be required to have at least one family member who is working and has a stable job history. In the long run, rent control can have some very negative affects. It decreases incentives for builders to build new housing because of the restriction on profits. Apartments that are rent controlled and not increasing with market value will be neglected by owners because they are not motivated to make any improvements due to zero chance of profiting from doing so, and this will result in property value loss. These neighborhoods may end up deteriorating.
