NEW YORK – (RealEstateRama) — In a letter to NYC Economic Development Corporation President Maria Torres-Springer sent today, Manhattan Borough President Gale A. Brewer raised concerns about the de Blasio administration’s selection of an out-of-state operator for the planned citywide ferry service.
In the letter, Brewer highlighted the potential loss of up to 200 jobs created by New York Water Taxi, which sent a memo to its employees stating it may need to shut down its existing operations in the face of subsidized competition from a citywide ferry service. Brewer also cited the negative impact New York Water Taxi’s shutdown could have on local businesses and organizations, such as the South Street Seaport Museum, which receives crucial operating support from the service through its lease of Pier 16.
“Does EDC have a financial plan to prevent the Museum from closing its doors as a result of lost revenue? You know how hard we are all working to support this institution, and a loss of income such as the one from this lease is devastating,” wrote Borough President Brewer. “While I certainly support increasing ferry service, the predicted loss of jobs and the foreseeable harm to New York Water Taxi and to the Museum must be addressed.”
Brewer has been an active supporter of the planned citywide ferry service, which is scheduled to launch in 2017. Last month, she and Brooklyn Borough President Eric Adams co-authored an op-ed in Crain’s New York Business outlining the need to connect ferry landings with the greater transit system, including existing networks servicing the East and Hudson rivers, as well as the need to expand service to Southern Brooklyn and the Manhattan’s West Side.
Brewer’s letter is available for download here (PDF), and the text of the letter is included below.
Letter from Manhattan Borough President Gale A. Brewer
to NYCEDC President Maria Torres-Springer
March 16, 2016
Dear Ms. Torres-Springer,
I write regarding the Citywide Ferry plan. I have several concerns about the process and potential outcome of the project. We received a colorful presentation of the new citywide service on March 9th, with maps and renderings of new boats and landing areas. Missing from the presentation were
details regarding the bidding and awarding of a contract for this service, its economic impact, and financial information on the anticipated subsidy.
I learned recently that New York Water Taxi, which provides ferry service around Manhattan and into parts of Brooklyn, has issued a memo to its employees that this plan will force them to shut down their service. They disclosed that if Citywide Ferry services were to be run by another company, no other private ferry service would be able to compete with the $2.75 per ride fare that will be subsidized by the City. New Yorkers and tourists alike will surely take advantage of the Citywide Ferry service, making it impossible for an independent company to compete and maintain its existing ridership.
I am also concerned about the future of the South Street Seaport Museum if New York Water Taxi ceases its operations there. The Museum is currently generating close to $600,000 annually in revenue from the lease that New York Water Taxi has on Pier 16, and the Museum informed my office that they were close to finalizing a new lease that would generate $1 million annually. This would be a loss of revenue that the Museum could not sustain. Does EDC have a financial plan to prevent the Museum from closing its doors as a result of lost revenue? You know how hard we are all working to support this institution, and a loss of income such as the one from this lease is devastating.
Another key concern is the 200 workers currently employed by New York Water Taxi whose jobs will be lost – a larger number, perhaps, than those in the tourist helicopter industry, which I know EDC fought hard to protect. How many new jobs will be provided under this new contract to offset those who are let go from New York Water Taxi? What assistance will EDC make available to those whose industry was disrupted by the City?
While I certainly support increasing ferry service, the predicted loss of jobs, and the foreseeable harm to New York Water Taxi and to the Museum must be addressed. I look forward to your response.
Sincerely,
Gale A. Brewer
Manhattan Borough President
Contact: Andrew Goldston | agoldston (at) manhattanbp.nyc (dot) gov | 917.960.1187
