BJH is providing financial and economic advisory services to Empire State Development in the redevelopment of a portion of surplus land at Belmont Park in Nassau County. The project, which is being privately funded, will create a new home for the New York Islanders, as well as new retail, hotel and entertainment facilities. ESD’s designated development partner has also agreed to invest in site and transportation improvements that will enhance accessibility and improve the public realm. BJH’s role included assisting with the draft Environmental Impact Statement (EIS) and analyzing the economic and fiscal impacts of the project, which will include the creation of over 3,000 permanent jobs and 10,000 construction worker-years.
BJH completed an economic and fiscal impact analysis as a part of Angels LandingPartners’ response to a City of Los Angeles request for proposals to develop the 2.24-acre vacant Angels Landing site. Angels Landing Partners is comprised of the Peebles Corporation, Claridge Properties, and MacFarlane Partners. The proposal included the development of two mixed-use towers of 24 and 88 stories, comprised of apartment, condo, hotel, school, and retail/restaurant programs. BJH estimated the potential economic impacts (measured in direct, indirect, and induced jobs, wages, and economic output in Los Angeles County) and fiscal impacts (measured through net new taxes to the City of Los Angeles) that would be generated by the proposed development. In December 2017, the City of Los Angeles selected Angels Landing Partners to develop the site.
Empire State Development (ESD) / Moynihan Station Development Corporation (MSDC) engaged BJH to provide real property tax analysis, financial feasibility, and underwriting support for the Moynihan Station redevelopment project. Using its expertise in New York City tax and incentive policies, BJH was able to assist ESD / MSDC in negotiating the payment in lieu of tax (PILOT) structure in the State’s ground lease with the selected developer. Arriving at an appropriate PILOT structure required BJH to determine baseline market and assessed values for comparable properties, project the property taxes that would be due from the repositioned asset, and advise on available incentives and current tax policy in the geography. ESD / MSDC used BJH’s work in support of a successful effort to obtain a Transportation Infrastructure Finance and Innovation Act(TIFIA) loan from the U.S. Department of Transportation. BJH prepared and presented materials on project economics and estimated PILOT revenues to rating agencies, including stress testing for downside scenarios.
BJH assisted the Sabey Corporation with leasing and acquiring permits for 375 Pearl Street, a 1.2 million square foot mixed-use project in Lower Manhattan. Sabey successfully leased 570,000 square feet of renovated Class A office space to New York City agencies during this period. Sabey also completed a renovation of the building to improve tenant experience. The renovations included restoring the building’s public plaza and installing curtain walls on floors 15 through 31. BJH facilitated lease negotiations, assisted with governmental relations services during the approvals process, and estimated the economic impacts for the City from reactivating this important asset
BJH was engaged by the New York Building Congress to develop a report providing an overview of the tourism and culture sectors in New York City, the vital role that the construction and design industries play in these sectors, and the emerging trends related to construction. The report surveys recent, current and planned capital projects that support tourism and culture in New York and analyzes their economic impact. Finally, the report addresses the most significant challenges hindering construction in this sector and presents recommendations for ensuring that New York continues to develop the infrastructure that is needed to remain a top global destination.
BJH advised Vista Foods Exchange on its submission to the New York City Economic Development Corporation for the development rights to a 7.5 acre site in the Hunts Point section of the Bronx. BJH prepared an operating and real estate pro-forma for the development of a food distribution center jointly operated by Vista Foods Exchange and S Foods Inc. BJH also prepared an economic development narrative and performed an analysis of the economic impacts that would result from the development.
BJH was engaged by Design Trust for Public Space to assist with analysis for its Future Culture: Connecting Staten Island’s Waterfront project, which aims to provide a set of recommendations to strengthen culture and enhance the waterfront on Staten Island’s rapidly developing North Shore. BJH conducted an economic impact analysis of the arts and cultural sector on the North Shore. The analysis included direct, indirect, and induced economic impacts driven by a broad cross section of organizations contributing to culture in the area including arts and cultural organizations, community organizations engaged in arts and cultural activities, maritime businesses in connection to the area’s heritage as a maritime hub, individual artists, recreational spaces, and independently owned food businesses on Staten Island’s North Shore. The analysis examined the impact of these sectors on the economies of both Staten Island and New York City. BJH also conducted a real estate market analysis to compare historic supply and demand for the retail, office, and industrial markets on the North Shore and Staten Island as a whole.
BJH was engaged by NYU Tandon School of Engineering to estimate the economic impact of its Future Labs program since its inception in 2009. Future Labs is comprised of the Urban, Data, Digital, and Veteran Future Labs, each of which incubates startup companies by providing them with targeted guidance, expertise, resources, and a community of similar businesses. The analysis estimated the direct, indirect, and induced jobs, wages, and economic output generated by the Future Labs program.
BJH served as the economic and real estate analyst for the team selected by the New York City Department of Cultural Affairs to prepare CreateNYC, the first ever cultural plan for the City of New York. BJH supported the team in its extensive community engagement process and conducted a literature review focused on sectoral analysis, labor market analysis, and social impact. BJH also prepared a comprehensive economic impact analysis of the cultural sector in New York City, which identified the total number of workers employed in cultural jobs in New York City, the total wages, and the total output associated with cultural sector. BJH projected the indirect and induced impact of the cultural sector in New York City. This work laid the foundation for the several recommendations put forth in the plan focused on supporting job growth and interagency coordination, as well as the recommendation for increased funding to support cultural organizations as engines of economic growth in New York City. The final plan was announced in July 2017 and can be downloaded here: http://createnyc.org/en/home/.
BJH conducted market research, funding identification, and economic impact analysis on behalf of the Office of Research and Economic Development at Rutgers University. The “Innovation Park@Rutgers” will catalyze university-industry-government collaboration, support innovators and entrepreneurs, and create tangible economic growth and community benefits. BJH’s work allows Rutgers to right-size the project for the University and surrounding area and understand the economic impact of its future activities. BJH conducted broker and developer interviews, described existing supply and demand of technology and life sciences real estate in the area, and quantified direct, indirect and induced impacts using input-output multipliers. A copy of the final report can be found here.
The Downtown Brooklyn Partnership engaged BJH in a multi-faceted research project to compare a defined downtown Brooklyn geography, pre-rezoning (approximately 10 years ago), to the activity, real estate, spending and other factors in the same geography today. BJH utilized public and proprietary data sources to examine the change in demography, public infrastructure, transit usage, housing units, retail development, and potential consumer spending/demand in a variety of retail categories, and arts and cultural attractions.
BJH, as the real estate advisor within a larger interdisciplinary team, evaluated the impact of the MTA’s Five Year Capital Plan on property values for a set of “mega” projects.” As part of this work, BJH spent several months researching the “value premium” associated with transit improvements for properties within close proximity to the capital investments. BJH’s work consisted of constructing a model to calculate this increase or “transit premium,” and then to compare the increase in value to the cost of the projects, in very broad terms. Estimates of property market values, historic and with transit premiums applied, were derived from New York City public data as well as market assumptions using CoStar and broker interviews.
In addition, BJH described, both quantitatively and qualitatively, the benefits of the Capital Plan on health factors (including physical activity and obesity), socio-demographic factors (including impact on aging populations), and environmental factors (net avoided greenhouse gas emissions). The data for these “ancillary” benefits was derived from public survey data generated by the New York City Department of Health, proprietary data from the MTA, and public data from beneficiary groups.
In 2013, BJH Advisors worked with HR&A Advisors to undertake a review of the activities of the New York City Housing Authority (NYCHA or the Agency), both the operations and capital initiatives, and then a subsequent economic impacts analysis of those activities on the New York City and New York State economies. The work involved analyzing the expenditures of the Agency over several historic periods, in order to project current impacts and to anticipate the major areas of benefit of NYCHA to not only the economies of the City and State, but specifically its impact on the labor and consumer markets as well. The full report can be found here.
BJH was the economic advisor to WXY/West 8’s Rebuild by Design team, developing a benefit-cost analysis framework for the team’s design solution – man-made barrier islands to be positioned off the coast of New York-New Jersey. In addition to establishing parameters for the benefit-cost discussion, BJH advised on issues relating to insurance markets in general and disaster related insurance products specifically. BJH interfaced with engineering team members on cost estimates as well as AIR’s disaster modelers who computed mitigated damage figures under storm scenarios where off-shore barriers or dune features protected the main land from severe storm surge. BJH also provided a high-level economic impact assessment of the contribution of the construction of the barriers/dunes to the regional economy, which included an assessment of employment (direct, indirect and induced), as well as broad based economic output. Link to the report here.
BJH performed an economic and fiscal impacts analysis of an arts-based, mixed used development called Bronx Commons. The project plan consists of several components, including 293 affordable housing units (15% of which are to be targeted at musicians), performing arts and studio facilities, and a high school focusing on musical training. BJH’s scope included calculating the one-time and ongoing economic impacts (direct, induced and indirect) of the project. One-time impacts include construction spending and employment. Ongoing impacts include benefits of the housing project to the artists/tenants, as well as the benefits of having studio / work space adjacent and affiliated with the housing. In addition to the quantitative impacts, BJH undertook a qualitative narrative of project impacts that highlighted the development’s creation of a focal point for income generating opportunities for musicians. The narrative provided case studies for how an area’s musical heritage could catalyze further economic activity, activity not traditionally accounted for in traditional economic multipliers. BJH finally assessed the characteristics of musician-driven, home-based employment, and how these activities contributed to the local economy in broad ways not traditionally associated with home-based employment.
In 2010-11, BJH worked on a report that researched and analyzed alternatives to housing for the funding of Brooklyn Bridge Park Operations. The process included public outreach, community hearings, and a public report that included a study of the following: a park improvement district, concessions, sponsorship, commercial development, fee based recreation, and leveraging local disposition of private assets for greater development potential. The process was guided by both guiding questions and a set of funding principles.