Tax Abatement Resolustion
2/24/2010
This resolution was passed on February 24, 2010 by Community Board 3.
WHEREAS: Arts and
Entertainment is one of the largest industries in
WHEREAS: Small to mid sized
theaters and other performing arts organizations are an integral part of the
Arts & Entertainment industry: A) as an entry point for actors,
playwrights, and other artists, B) for the expression and exploration of the
diverse culture of New York City communities, C) for sites of creativity,
experimentation and innovation, D) for jobs in our local communities;
WHEREAS: Small to mid sized
theaters and other arts venues are economic drivers of local neighborhoods, and
are crucial to the cultural and economic resilience and diversity of our
neighborhoods;
WHEREAS: Small to mid sized
theaters and other arts venues are closely tied to local neighborhood small
businesses, for instance one theater in CB3 has 70 restaurants contribute food
to an annual arts festival;
WHEREAS: Small to mid sized
theaters and other performing arts venues have a substantial economic impact in
CB3, for instance, the [East] Fourth Street Arts Cultural District has estimated
that their member arts organizations generate more than $24.8 million in
economic benefits for local restaurants, shops, and support services and when
networked across the Lower East Side, the economic impact of neighborhood arts
groups is over $50 million. (Source:
Fourth Arts Block using the US Department of Commerce’s conservative
economic multiplier of 2.01).
WHEREAS: CB3 has been a
historic incubator and concentration of Off-Off Broadway theaters and has lost
many of its small theaters in the late 90s and other performing arts venues in
the last decade due to real estate competition and speculation, resulting in
spaces constructed for performance being repurposed and irretrievably lost;
WHEREAS: Areas (CB2, CB4,
CB5) surrounding CB3 have recently lost 25-30 percent of their small to mid
sized theaters in the last five years predominantly due to real estate
competition (New York Innovative Theatre Awards study, Dec 08);
WHEREAS: CB3 remains an
important viable center for theater and performing arts with an increase in
productions despite a loss of venues (NYITA study Dec 08) by the
intensification of use of its remaining space (highest proportion of
productions per venue in Manhattan);
WHEREAS: Other cities and
states have successfully enacted innovative policies (e.g. land use, tax,
public buildings) to sustain and retain theater and other performance venues;
WHEREAS: CB3 Art Task Force
Town Halls, and the joint Community Board Forum on small to mid sized theaters
have been well attended with extensive expert and public testimony the
importance of theater and arts venues for local communities and on the loss of
theater and arts venues due to real estate competition and speculation.
WHEREAS: Presently,
non-profit theaters and performing arts organizations venues that own their own
space get a Real Estate Tax Credit, but identical organizations that lease
space from a for profit landlord do not;
WHEREAS: A Real Estate Tax
credit for renting to small to medium sized performing arts organizations,
would provide a financial incentive to lease to such organizations at a lower
market rate;
WHEREAS: The City of New
York provides City subsidized space for some of the largest arts organizations
in the City;
WHEREAS: CB3 passed a
unanimous resolution in March 2009 calling on elected officials to: “Develop
and adopt land use, tax and other governmental incentives and policies to
retain and secure theater and other arts and cultural venue spaces and to
retain arts and cultural organizations in our district and the City of
WHEREAS: Arts & Theater
Task Forces of Community Boards 1, 2, 3, 4 and 5 have collaborated to develop a
proposal for a Real Estate Tax Credit for renting to small to medium sized
performing arts organizations and have reached out to obtain support and input
from the rest of the Community Board Arts Task Forces;
WHEREAS: The New York City
Council and Manhattan Borough President representatives and staff provided
technical assistance to the CB Arts TF’s and Committees for the development of
a feasible proposal for a Small to Medium sized Performing Arts Real Estate Tax
Credit;
WHEREAS: CB3 in the danger
of losing performing arts venues that have commercial leases from for profit
landlords that may indeed be able to stay in CB3 with lease renewals at
feasible rates;
WHEREAS: CB3 has historic
performing arts space that could be recovered for such use with the incentive
of a Real Estate Tax Credit;
WHEREAS: There is currently
vacant space in CB3 that could become feasible to rent to displaced performing
arts organizations with a Real State Tax Credit;
WHEREAS: CB3’s local
businesses, resident artists and patrons will economically benefit from greater
retention and stability of local community performing arts venues;
WHEREAS: In this time of a
deep recession, performing arts organizations can contribute to the economic
resilience of our local economy;
THEREFORE BE IT RESOLVED:
CB3 calls on its elected representatives of the New York City Council, New York State Legislature, Mayor and
Governor to work with Manhattan Community Board 3, the theater, arts & culture
related committees of all 12 of Manhattan’s Community Boards in their unprecedented
informal alliance to develop innovative solutions to halt the rapid demise of
this important Cultural sector beginning with the proposal for a real estate
tax credit and the development and adaptation of other policies to incentive for
space for small to mid-sized non-profit performing arts organizations.
