Dear Members,
I would like to inform you that Speaker Quinn announced her support for a living wage bill. Although the text of the bill is not yet published, we understand that the concerns of the businesses community have been addressed by removing requirements for tenants to pay the "living wage".
Below is the statement REBNY released. Any bill would require a vote by the full City Council. We expect the Mayor to veto the bill, and it is likely that the City Council would obtain the 2/3 vote required to override the Mayor's veto.
STATEMENT FROM STEVEN SPINOLA PRESIDENT OF THE REAL ESTATE BOARD OF NEW YORK REGARDING LIVING WAGE
NEW YORK, January 13, 2012 - "The Real Estate Board of New York (REBNY) is pleased that Speaker Christine Quinn recognizes that only those who directly receive benefits should be obligated to pay a City-established Living Wage in return for receiving such benefits. We are glad to have had the opportunity to work closely with the Speaker and her staff in identifying a fair and reasonable policy that will not discourage economic growth, job creation or additional tax revenue to help pay for vital government services. Speaker Quinn is sending out a clear and important message that New York City welcomes retailers, their investments in our city and the jobs they provide. We also would like to thank those City Council members who stood against prior legislation that would have resulted in less employment in New York City as well as the Mayor who has been steadfast in speaking out against legislation that will result in less, rather than more, opportunities for New Yorkers."
Our understanding is that the Living Wage Bill requires:
• Living wages must be paid by the entity that directly benefits from the incentive. Tenants of such buildings will not be covered unless the beneficiary has a substantial ownership interest.
• EDC will make its best efforts in their negotiations to get tenants of such projects to agree to pay living wages. Any unsuccessful efforts will require EDC to provide a report to the Council.
• A pilot project will be funded by the City to provide incentives to those tenants that agree to pay the living wage.
We will continue to inform you as we receive more information.
Have a safe and happy holiday weekend.