Brooklyn's Progress
July 2004

The Brooklyn Chamber supported reauthorization of REAP during its Annual Lobbying Trip to Albany in 2003.

Assembly Speaker Sheldon Silver announced on June 14 the Assembly passage of legislation that would renew the New York City Relocation and Employment Assistance Program (REAP).
 
"With today's vote, we are not only continuing a program that encourages businesses to stay in New York City, we are enacting significant improvements that will benefit the Lower Manhattan community that is still struggling in the aftermath of the September 11 terrorist attacks," said Speaker Silver.
 
Speaker Silver noted that the bill is the product of months of negotiations with the city aimed at improving the program's effectiveness by providing enhancements in the program's existing areas and by ensuring that premises in the federally designated Resurgence and Liberty zones in Lower Manhattan are REAP eligible.
"Today's action is a real advancement in efforts to keep businesses and the jobs they provide from moving to New Jersey or Connecticut," said Speaker Silver.
 
"As chair of the Assembly Committee on Cities, I am particularly pleased that this successful program will continue to respond to the economic needs of New York City," said Assemblyman Scott Stringer. "I commend all those who worked on this important bill and am certain that the program will continue to benefit individuals who live and work in our city."

The REAP program, originally enacted in 1987, encourages businesses to relocate to New York City and provides incentives to businesses that are considering leaving the city to instead relocate within the city to areas in need of economic stimulus.
Under the new program, Lower Manhattan will be added to the list of city communities where businesses considering other competitive locations, such as New Jersey, can relocate to and obtain economic incentives. Under the original law, eligible areas were limited to the outer boroughs and Manhattan north of 96th Street.

The Assembly bill (A.11459) extends the program through 2008 and provides a refundable, per employee tax credit. The benefit is $3,000 per employee in most eligible areas and is conditioned upon improvements to the premises to which the firm is relocating. The benefit calculation is improved to better assist growing businesses and eligibility criteria are expanded to make the program more accessible to potential tenants.

Other enhancements to the program include extending the benefit calculation time period from four to six years and establishing benefit portability improvements.

The bill was passed by the Senate on June 15 and sent to Governor Pataki.