Area businesses estimate $40M in lost revenue because of Trump Tower ‘occupied zone’

Posted On Wed, January 11, 2017 By

Posted On Wed, January 11, 2017 By In Celebrities, Midtown

President-elect Donald Trump’s decision to remain in his Manhattan HQ is causing concern among businesses in the area. Business leaders and local officials spoke out Tuesday at a City Council hearing on the threat that blocked sidewalks and traffic snarls are posing to jobs, tax revenues, tourist appeal and “global reputation,” reports Crain’s. Local merchants claim they’ve taken a significant hit, and that many are considering not renewing their leases or moving elsewhere. Fifth Avenue Business Improvement District president Tom Cusack estimated that local businesses have lost $40 million in revenue since Election Day due to the security maze that the area surrounding Trump Tower has become.

Kathryn Wylde of The Partnership for New York City warned that “extraordinary action” was needed to protect the city from unprecedented problems in the popular tourist destination that now “has the look and feel of an occupied zone.” The Fifth Avenue zone around West 56th Street between Fifth and Sixth Avenues is home to high-end destination shops like Gucci and Tiffany & Co. and over 100 small businesses, all of which provide around 1,000 jobs according to Manhattan Borough President Gale Brewer. A suggestion made by former transportation commissioner Janette Sadik-Khan to turn the area into a pedestrian zone was also met with alarm, as big-spending customers often arrive by car.

Security costs ahead of Trump’s swearing-in have also been estimated at a higher-than-expected $37.4 million according to the Daily News, with a $500,000-a-day tab estimated for every day he’s back in town after he becomes president. The NYPD estimates that if Trump spends half his time in NYC after the inauguration the department’s costs would go up by $91 million a year.

As 6sqft previously reported, Congress has offered only $7 million so far for costs that include traffic enforcement by the NYPD’s civilian traffic enforcement agents as well as salaries, overtime and benefits of officers on guard at the glitzy midtown skyscraper. Officers are being moved from neighborhoods throughout the city to beef up the security detail, with overtime pay being used to replace them; Deputy Commissioner of Management and Budget Vincent Grippo said at the City Council hearing that although neighborhoods aren’t being negatively affected, overtime pay would exceed the department’s allocated $500 million overtime budget: “We end up with a financial hit. This is an unprecedented event of a tremendous scale and size. New York City taxpayers should not ultimately be on the hook for that.”

Councilman Dan Garodnick, chairman of the economic development committee and representative for the midtown neighborhood directed a plea to the prez-elect to take up residence somewhere away from what has been called midtown’s busiest corner: “We ask that you not treat Trump Tower as a pied-a-terre.” Garodnick said Trump’s transition team was invited to testify at the hearing but did not respond to the request.

[Via Crain’s; Via NYDN]

RELATED:

Tags : , , , , , ,

Neighborhoods : Midtown

MOST RECENT ARTICLES

  • Health and high-rise living: Is higher healthier?

    Health and high-rise living: Is higher healthier?

    In 2017, new high-rise developments will continue to define the city’s skyline. There are currently more than 30 high-rise developments ...
  • MTA board members admit subway service is terrible

    MTA board members admit subway service is terrible

    On Monday, numbers released by the MTA served to confirm something we’ve all known for quite some time now: NYC ...
  • Construction update: Google’s Pier 57 expansion gets glassed

    Construction update: Google’s Pier 57 expansion gets glassed

    Pier 57 now showing some skin; Photo: CityRealty Work is moving along at the waterfront development that is rehabilitating and revitalizing ...
  • Jon Bon Jovi’s former Soho penthouse returns for $38M

    Jon Bon Jovi’s former Soho penthouse returns for $38M

    A year and a half after Austrian-American businessman and investor Gerhard Andlinger scooped up Jon Bon Jovi’s Soho penthouse, he’s put it ...
  • Art dealers’ Cobble Hill townhouse has gym, wine cellar, and city views for $6.5M

    Art dealers’ Cobble Hill townhouse has gym, wine cellar, and city views for $6.5M

    Two Manhattan gallerists, one six-story Brooklyn townhouse—you’d think it would be a match made in heaven. But the home’s current ...
  • Driving Barron Trump to school won’t leave NYC in total traffic chaos

    Driving Barron Trump to school won’t leave NYC in total traffic chaos

    It appears the Secret Service and NYPD are indeed taking measures to minimize the disruption caused by Melania and Barron staying ...
  • Map: Here’s where you can afford to live in NYC in 2018

    Map: Here’s where you can afford to live in NYC in 2018

    For New York home buyers, a lot can change in a year. A neighborhood that was considered affordable can all ...
  • A photographer’s classic Soho loft complete with furniture and art asks $10K/month

    A photographer’s classic Soho loft complete with furniture and art asks $10K/month

    The most interesting thing about Soho lofts is often the people who inhabit them; all begin as hangar-sized white spaces with ...
  • Get a free Shake Shack burger via their new app

    Get a free Shake Shack burger via their new app

    Even when all hope seems lost—there’s nothing like a free cheeseburger to raise morale. Shake Shack is celebrating the launch ...
  • Amtrak tearing down Penn Station departure board; Billy Bush lost $1.4M on his Chelsea house

    Amtrak tearing down Penn Station departure board; Billy Bush lost $1.4M on his Chelsea house

    Penn Station’s archaic-yet-iconic Amtrak departure board is officially coming down today to make way for a series of updated, smaller ...
  • De Blasio to allocate $300 million and accelerate construction of third NYC water tunnel

    De Blasio to allocate $300 million and accelerate construction of third NYC water tunnel

    City Water Tunnel No. 3, one of the largest capital projects in the city’s history; Images: NYC DEP Mayor Bill ...
  • Central Park South co-op of the late Doris Roberts lists for $3.3M

    Central Park South co-op of the late Doris Roberts lists for $3.3M

    Emmy-winning actress and animal-rights activist Doris Roberts (you probably know her best as Marie Barone from “Everybody Loves Raymond”) passed away ...

SIGN UP FOR OUR NEWSLETTERS

Thank you, your sign-up request was successful!
This email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.