Newmark CEO recommends ideas for the city economic development.

If you'll excuse an analogy, cities are like sharks; they need to keep moving, keep developing, in order to survive. New York City is, without question, the financial, cultural and civic center of the world. However, New York will not retain this position by standing still. The only way for New York to maintain, and even broaden, its status is to utilize the same tactic that got it this far to begin with: innovation.

Much of New York City has been redeveloped or repositioned in the last two decades. SoHo, Park Avenue South, Times Square; these are just a few of the neighborhoods that have been revitalized in Manhattan. However, what about the outer boroughs?

As a member of Senator Schumer's Group of 35, I have thoroughly studied the outer boroughs. In our report, the group concluded that in order to broaden New York's economic development, it was necessary to turn to the outer boroughs. The city took an important step forward in this regard in 1991, when it created the Relocation and Assistance Program (REAP), which encouraged companies, through economic incentives, to relocate to the boroughs or Northern Manhattan. A variety of companies have taken advantage of this program over the last decade, including Empire Blue Cross and MetLife, and have moved to areas such as Brooklyn and Long Island City.

REAP is set to expire in June 2003. This program should not only be renewed, but also should be broadened and simplified. REAP's effectiveness can be enhanced by eliminating certain requirements, including that a building has to have been built before 1999, that a property's common areas and space be improved and that a minimum of 25,000 SF of space be leased.

In addition to undertaking these measures, New York City should create an equal alternative to the REAP program for companies that do not incur corporate income taxes due to their status as LLPs or LLCs. This would also benefit insurance companies, which pay a tax on premiums, rather than income taxes, as well as not-for-profit organizations or firms without income tax liability. New York State also needs to undertake measures, beyond REAP, including additional economic incentives and infrastructure improvements, that will put the outer boroughs on a level playing field with Long Island, New Jersey and Connecticut.

Financial incentives are an important part of New York's future development, but there are other steps the city can, and should, take to be successful in retaining jobs and attracting new industries.

New York needs to consider rezoning initiatives that will allow for new uses and increased densities in designated areas. New York should also be investing in transportation and other infrastructure improvements in areas of the boroughs that are ready for private redevelopment.

The pioneering projects underway in Downtown Brooklyn and Long Island City should serve as models for this type of comprehensive effort. This will also encourage retail and residential development in areas designated for business growth, which will link new businesses with surrounding neighborhoods and amenities to create actual communities.

Earlier this century, the outer boroughs of Manhattan were their own distinct neighborhoods: places where people lived, worked and led their lives. Today, with unemployment on the rise in these areas, New York City has a responsibility to assist them, not just to become places where industry can thrive, but also places where communities can excel.