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

  • Brooklyn cheesemongers to open their underground 1850s brewery tunnels for one night

    Brooklyn cheesemongers to open their underground 1850s brewery tunnels for one night

    Thirty feet below street level, Benton Brown and Susan Boyle of Crown Finish Caves age their deliciously moldy wares in ...
  • Explore historic LGBT sites in NYC with this interactive map

    Explore historic LGBT sites in NYC with this interactive map

    To broaden people’s knowledge of the lesbian, gay, bisexual and transgender community’s history in New York City, the NYC LGBT ...
  • ‘Cash Cab’ will return later this year; Paul Manafort’s shady NYC real estate dealings

    ‘Cash Cab’ will return later this year; Paul Manafort’s shady NYC real estate dealings

    New York-based designer (and 13-year U.S. citizen) Karim Rashid said he had a “crazy journey” getting by US Border Control at JFK. ...
  • ‘Fearless Girl’ statue will remain on Wall Street for another year, but officials say that’s not enough

    ‘Fearless Girl’ statue will remain on Wall Street for another year, but officials say that’s not enough

    Image via Metro / Getty The drumbeat for making the statue of Fearless Girl a permanent fixture in Lower Manhattan ...
  • Investor flips Trump’s childhood home for double what he paid, likely selling to Chinese buyer

    Investor flips Trump’s childhood home for double what he paid, likely selling to Chinese buyer

    When Manhattan real estate mogul Michael Davis bought Donald Trump’s childhood home sight-unseen for just under $1.4 million in December, he ...
  • ‘Narnia’ apartment in Park Slope has a hidden door and built-in swing

    ‘Narnia’ apartment in Park Slope has a hidden door and built-in swing

    The listing calls this apartment a “gateway to a modern version of Narnia”–and it’s hard not to agree. A designer ...
  • 15 indoor air-purifying plants for your apartment or home

    15 indoor air-purifying plants for your apartment or home

    Our ongoing series Apartment Living 101 is aimed at helping New Yorkers navigate the challenges of creating a happy home in the big ...
  • Justin Timberlake and Jessica Biel are bringing sexy back to Tribeca with new penthouse buy

    Justin Timberlake and Jessica Biel are bringing sexy back to Tribeca with new penthouse buy

    Although Justin Timberlake was spotted scoping out an $18.5 million Greenwich Village penthouse last month, he chose Tribeca to call home ...
  • First look at the interiors of Waterline Square’s trio of towers

    First look at the interiors of Waterline Square’s trio of towers

    As 6sqft reported in November, a trio of glassy residential towers is rising on the five-acre waterfront site between West 59th and ...
  • Frank Lloyd Wright Fallingwater lookalike asks $3.5M in Greenwich, CT

    Frank Lloyd Wright Fallingwater lookalike asks $3.5M in Greenwich, CT

    Designed by local architect Dimitri Bulazel, this 4,675-square-foot four-bedroom home at 51 Pecksland Road in Greenwich, CT was clearly inspired by Frank ...
  • Elegant co-op in an UES mansion still has its original leaded casement windows

    Elegant co-op in an UES mansion still has its original leaded casement windows

    This two-bedroom co-op occupies the parlor and garden floors of 4 East 82nd Street, a stately Carnegie Hill mansion. Despite ...
  • Kickstarter campaign raising $10,000 for a 15-foot inflatable ‘Trumpy’ rat

    Kickstarter campaign raising $10,000 for a 15-foot inflatable ‘Trumpy’ rat

    As a symbol of resistance to the Trump administration, Chelsea-based contemporary art gallery BravinLee created a Kickstarter to raise $10,000 ...

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.