Barry Sullivan to head NYC Partnership.

Barry Sullivan, New York City's popular Deputy Mayor for Economic Development, will move over to the private sector on January 1 to head the New York City Partnership and Chamber of Commerce. He succeeds Ronald K. Shelp, who resigned last month to return to his business career.

As Deputy Mayor, Sullivan has been responsive to the business and real estate communities with efforts to lighten the commercial occupancy tax, remove vendors from Midtown avenues and retain major employers.

He is expected to continue the Partnership's public policy agenda toward privatization and operational reform consistent with its goals of economic development and job creation. Jerry I. Speyer, chairman of the group, said Sullivan brings a proven track record of accomplishment in building consensus among disparate groups and formulating solutions to difficult problems.

The Partnership's founder, David Rockefeller, has known Sullivan for some23 years, during which time Sullivan advanced through the ranks of Chase Manhattan Bank and became Chairman and Chief Executive of First Chicago Corporation. Sullivan held this position for the eleven years prior to his return to New York City and his current government role.

As part of his Partnership duties, Sullivan said he expects to be pushing the recommendations being made in the Structural Budget Imbalance Report released last week. "We have to be helpful in Albany because most of the things require legislative approval," he said. The report gives the mayor a series of options, but many of them need the legislative OK, Sullivan said.

He also expects to follow-up on the Partnership's major report on privatization, as well as other matters.

Looking back on his time as Deputy Mayor, Sullivan said he is most proud of the work he did on corporate retention. "It's fair to say we stabilized the business base," he recalled. When he joined the Dinkins' administration in May of 1992, there was a long list of companies, including Morgan Stanley, that were analyzing the benefits of staying in the city versus leaving. Today, only a couple of fence sitters remain.

"We worked our way through the backlog...through the most dangerous time. I can feel good about that," he said. Sullivan calls the hotel tax "public enemy number one," with the commercial rent and occupancy tax next in line. "The hotel tax has caused a boycott of the city and a negative economic impact," he said. But he noted, they are long term issues, saying, "You don't magically cut a tax."

As for the property tax, Sullivan says Mayor-elect Giuliani will have to balance his objectives. He needs to do things with a light touch, Sullivan advised, and an understanding that moving strongly will have negative effects. "The property tax needs reform but...it will be hard to implement," Sullivan said. "The devil will be in the details."