A Proposal for the Richmond Terrace Local Development Corporation Published July 2015 1
The Staten Island Economic Development Corporation (SIEDC), in partnership with the property owners and businesses along the Richmond Terrace corridor, proposes the creation of a Local Development Corporation (LDC). In response to years of requests for a solidified plan to promote and sustain businesses along Richmond Terrace and address both quality of life and economic development issues, SIEDC undertook a survey of businesses and has produced this study to provide recommendations. I. PROJECT BACKGROUND The Richmond Terrace corridor is a strategic industrial location in the borough - and one of the last in New York. Some of the last remaining maritime businesses in New York City are located along this corridor. The industrial businesses on Richmond Terrace have been an engine of economic growth on the island for decades - providing jobs and opportunity for the local community. However, the area has suffered from a lack of investment in its infrastructure; narrow roads, potholes, unsanitary conditions, poor street lighting, crime and lack of commercial parking are just some of the challenges the corridor faces. Also, residential zoning exists in close proximity to industrial uses and there are direct conflicts that need to be addressed. Couple this with the scars left behind from Hurricane Sandy and you can see why the LDC is so imperative. II. AREA CONTEXT The Richmond Terrace corridor is a strategic industrial location in the borough - and one of the last remaining in New York City. It is one of the last surviving maritime corridors in the city and the area of one of the three Industrial Business Zones (IBZs) in the borough. Industrial Business Zone The land use on the water side of Richmond Terrace is largely industrial with some commercial use and stable maritime sector services. The inland side of the street is predominantly small scale commercial and residential use. The industrial businesses on Richmond Terrace have been an engine of economic growth on the island for decades - providing jobs and opportunity for the local community. However, the area has suffered from a lack of investment in its infrastructure; narrow roads, potholes, unsanitary conditions, poor street lighting, crime and a lack of commercial parking. Additionally, businesses in the area are often unaware of programs and services provided through the IBZ program due to a lack of civic participation, engagement and access. In 2005, IBZ s were created to preserve and enhance the industrial corridors of New York City. By creating specific tax incentives and business programs, the IBZ allows for a competitive advantage for businesses. The IBZs are supported by tax credits for relocating within them, zonespecific planning efforts, and direct business assistance from Industrial Providers of NYC Business Solutions Industrial and 2
While SIEDC has worked with numerous companies along the stretch for years, this survey opened up new connections for the organization. Finally, residential zoning exists in close proximity to industrial uses and there are direct conflicts that need to be addressed should this study be implemented for a wider scope. It is critical to protect the IBZ from encroachment and re-zoning as seen in Williamsburg and Greenpoint. Manufacturing sector workers in NYC earn $15,000 more than retail workers and twice that of restaurant and service workers. III. SURVEY METHODOLOGY Over a period of three months, SIEDC interviewed 93 business and property owners throughout the area. Many were in industrial and maritime businesses, but this study also allowed SIEDC to meet with support industries along the corridor which play a vital role for the overall economic vitality of the area but many times do not interact with SIEDC. A survey was created which asked subjects if they had any interest in or questions about typical IBZ services including Navigating Government, Incentive Enrollment, Financing and Loans and Workforce Training. An additional section was included which requested feedback from subjects regarding quality of life issues such as Road Conditions, Parking, Transportation, Littering among others. During face-to-face visits, SIEDC would meet with each subject and explain the IBZ program and perform an initial intake. If a subject was deemed eligible and suitable for IBZ services, SIEDC would perform a follow up visit immediately. This work resulted in 15 follow up meetings and IBZ contract-related work, mostly related to Navigating Government. IV. SURVEY RESULTS When asked to rank quality of life issues and IBZ services in order of importance to daily operations, respondents specifically focused on the need for security and maintenance improvements in the area. Many businesses have been affected recently by instances of break-ins, illegal dumping and loitering. Nearly 40% of those surveyed responded that road conditions such as potholes and standing water along Richmond Terrace were serious issues. Among the common IBZ program services, interest in Navigating Government and Contracts and Financing were popular responses from businesses owners and nearly 20% of those surveyed said that they would like SIEDC to assist them in some manner. Business incentives and Workforce Training were low on the list, with only 12 affirmative responses of 93 businesses surveyed (13%) 3
SIEDC is considering reaching out to various agencies including the NYPD and NYCDOT to engage in a discussion on how some of these issues can be remedied which can result in strong Navigating Government services. SIEDC will also continue to promote Incentive Programs throughout the corridor and regularly check-in with and track real estate acquisitions and expansions to help enroll businesses in programs such as the Industrial and Commercial Abatement Program (ICAP). While Workforce Training was not an IBZ service that many businesses were interested in, SIEDC recognizes that it is an important way to integrate a lowincome community with the existing and robust business environment abutting it. SIEDC plans to expand its marketing and outreach for Workforce Training and cultivate new partners. Percentage of "High" and "Medium" Priority Votes. Marketing 11% Sanitation 19% Security 33% Signage 15% Maintenance 22% 4
40 35 30 25 20 15 10 5 0 "Yes" Responses to Specific Advocacy and Assistance Roads Utilities Navigatin g Governm ent Contracts and Financing Parking Training Business Incentive s Series1 37 17 14 12 16 7 5 45 40 35 30 25 20 15 10 5 0 Richmond Terrace Survey Results 93 Businesses Surveyed Security Maintenance Signage Sanitation Marketing High 41 28 19 24 13 Medium 28 34 37 37 40 Low 24 31 37 32 40 5
V. QUALITY OF LIFE ISSUES The Richmond Terrace corridor faces numerous land use and quality of life issues which impact businesses. A thorough investigation of the corridor has revealed a plethora of issues which affect both businesses and residents. SANITATION: There is recurrent illegal dumping and littering along Richmond Terrace. Trash and debris along the roadway and sidewalk create a perception of dereliction and abandonment. Unfortunately because the area does not have many retail storefronts, there are few businesses willing to clean their sidewalks or curbs. Additionally, there are numerous unkempt treepits and property lines which are unsightly. NARROW ROADS: A major problem along Richmond Terrace is the narrow and winding street which causes a great deal of congestion during peak hours. Due to the industrial nature of this corridor, many firms transport heavy materials with tractor trailers. During rush hour, the road becomes extremely hazardous to pedestrians and passenger vehicles. Double parking narrows the road even further which creates dangerous choke-points along the road. The corner of Richmond Terrace and Morningstar Road is especially disruptive to local traffic flow. 6
LACK OF COMMERCIAL PARKING: Several business owners have voiced concern over the lack of commercial parking. The corner of Andros Avenue and Richmond Terrace (pictured) is home to several towing and mechanic shops. The lack of parking on this street creates friction between business owners and a hazardous situation for parked cars. The next location (pictured) is on the corner of Richmond Terrace and Granite Ave. This location is home many businesses and the lack of parking makes navigating through the street difficult. VACANT BUILDINGS: Building vacancy and neglect is prevalent all throughout this corridor. Vacancies are most apparent on the inland side of Richmond Terrace between Holland Avenue and Lake Avenue. Below are examples of some of the creeping blight in the area. Many local resident and businesses are concerned with the deterioration of the area. 7
POOR ROADS: Richmond Terrace has many potholes along the roadway. Deep craters such as the one pictured below cause vehicles to swerve and produce many flat tires, broken equipment and pedestrian accidents. The sudden avoidance of potholes from a vehicle may present a hazard to pedestrians and traffic. POOR STREET LIGHTING AND HANGING WIRES: This hanging wire (pictured below) was found on the corner of Richmond Terrace and Lockman Avenue. The wire presents a danger to pedestrians who walk along the road. Businesses have mentioned that during evening hours the neighborhood becomes extremely dark due to poor street lighting. Recently, a deli owner was robbed and stated that he could not make out the vehicle license plate because of the poor street lighting. 8
RESIDUAL DAMAGE FROM HURRICANE SANDY: Sandy is a major backdrop to this corridor and the damage is still felt today. Many of the businesses have reported not receiving sufficient aide from the city after losing much of their inventory. Pictured below is a warehouse located on the ocean side of Richmond Terrace. The owner reported that all of this equipment was destroyed during the storm. While SIEDC did facilitate significant lending and assistance post- Sandy, many businesses are still struggling to rebuild and there is a common perception that city programs are both too time-consuming and arduous for a small business to engage in. SIEDC will work with these firms to explain benefits and streamline the enrollment process. 9
VI. WHY NOW? WHY THE SIEDC? The Staten Island Economic Development Corporation has a long history of working with Richmond Terrace businesses including providing post-sandy lending assistance and ongoing services. Many of these relationships have proven vital in building networks of cooperation and communication throughout the community. In 2013, the SIEDC performed a land use analysis to improve quality of life measures along the corridor. The organization also successfully launched the West Shore BID- the only industrial BID in the borough. Finally, The SIEDC is also working to finalize the South Shore BID (mid-2015) and has launched the New Dorp Merchants Group. This track record of success and cooperation uniquely qualifies the SIEDC to manage the proposed LDC. Typical LDC Services Develop a Database of Businesses, Properties & Key Contacts to Disseminate Information Create an Inventory of Issues to be Addressed by City Agencies Create Better Communication between Businesses/Residents and City Agencies/Utilities Maintenance Improvements o Street & Sidewalk Cleaning o Graffiti Removal o Landscaping, Flower & Tree Plantings 10
o Increased Trash Receptacles Public Safety Improvements o Expanded Police Patrols o Security Cameras (Similar to Those on Port Richmond Avenue) Road & Parking Improvements Public and Open Space Improvements Capital Improvements including Streetlight Repairs Land Use Recommendations and Long-Term Planning Assisting with Business Development including Commercial Vacancy Reduction and Business Diversity Improvements VIII. STEPS TO CREATE AN LDC SIEDC firmly believes that the best way to alleviate the issues faced by businesses and property owners on Richmond Terrace and to create a more robust business climate is to create a Local Development Corporation. Additionally, SIEDC asserts that the results of the study demonstrate that services such as security, maintenance and direct advocacy which could be provided through a LDCare essential. In order to move this effort forward, SIEDC will: Develop a Database of Businesses, Properties & Key Contacts Create an Inventory of Issues Continue Discussions with City Agencies & Elected Officials Hold Stakeholder/Public Meetings Launch Work Related to SIEDC s AvenueNYC Grant (August 2015) Finalize Service Area Boundaries Develop a Service Menu and Release of RFPs to Vendors Work with NYCSBS to Create a District Vision Plan NEXT STEPS Create a Taskforce of Government Agencies and Utilities to Work on Specific Issues Launch a Local Development Corporation (LDC) to Provide Services Secure Approvals and Support to Launch a Business Improvement District (BID) 11