Builders, owners earn Comptroller's thanks.

New York City Comptroller William C. Thompson, Jr. was able to deliver some good news at the Associated Builders and Owners luncheon on May 12. Thompson assured the audience that New York has recovered from the fiscal crisis of the 2002-2003 and will continue to prosper in the near future.

The Comptroller conceded that Mayor Bloomberg's administration had to take some tough measures earlier in its term to close the city's budget gap, including cutbacks in municipal services and a steep, 18% property tax hike. But in his view, the measures were necessary and ultimately brought New York back to health.

"When I took office in January of 2002, New York City was in turmoil," he noted. "In 2001, we hit a recession and probably lost 100,000 jobs.

"Then we had September 11 and lost 150,000 additional jobs. So we went from an economic boom to a slowdown in a very short period of time. We had stunning budget deficits at $6 to $7 billion. Back in 2002, we were in tough shape. In 2005, we will have a surplus of $3.3 billion."

Thompson thanked the real estate executives for their help in getting the city back on track, admitting that a big part of New York's current renaissance has to do with rising property values.

"We are probably starting to go into a huge era of growth, [thanks to you]," he said. "We've invested more in real estate in New York City in the past few years than we've ever done before."

Among the organizations that have partnered with the city government to bring more residential and commercial projects into the area are Tishman Speyer, which received $200 million for its office buildings, Fisher Brothers, which committed itself to work in the outer boroughs and the Battery Park City Authority, which will contribute $130 million over the next four years toward creation of affordable housing.

But in spite of the Comptroller's newfound confidence in the future of New York, he warned that there are still major issues facing its residents. Among them is the lack of affordable housing for middle-income New Yorkers, and a shortage of jobs for immigrants.

"We have more immigrants coming into the city than ever before and we have to continue to find jobs and housing for these people," he warned. In an uncharacteristic show of candor, Thompson also spoke about the proposed West Side Sports and Convention Center, emphasizing the fact that the project will ultimately be nothing more than a football stadium.

"I think the stadium will pay for itself," he noted. "But everyone says it's going to be a sports and convention center, when the Javits Center can do all that. The fact is it's a football stadium." However, because Thompson has not openly expressed his views on whether the project should be built, he has been able to work with Mayor Bloomberg to ensure that the city won't incur an excessive amount of debt in the process.

He said, "I fought the mayor publicly about [his original plan for] financing and convinced him. I was able to do that because it wasn't a political issue."