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“If implemented, RACE would incentivize large-scale relocations to older, underused office spaces to bolster the citywide economy. This would work hand-in-hand with REAP, elevating additional businesses, neighborhoods, and industries.”
Anyone who has lived, worked, or even visited New York City can attest to its growing lack of affordability. The city’s 183,000 small business owners aren’t exempt—with rising costs on everything from materials to utilities, it’s harder to stay afloat and nearly impossible to grow. This is stunting businesses and job growth, and as a result, communities in every corner of our city, with no signs of abating anytime soon.
Any elected official who is serious about addressing our affordability crisis must prioritize strengthening jobs in our city. That means we need smart policy that maintains and grows businesses by providing them the resources to succeed.
One successful initiative doing so is the Relocation and Employment Assistance Program (REAP), which incentivizes businesses to move to New York City’s outer boroughs and Northern Manhattan. As leaders of the Chambers of Commerce in Brooklyn, Queens and the Bronx, we’ve seen this impact firsthand from businesses that have relocated, grown, created jobs, and contributed to our boroughs’ overall vitality.
Gov. Kathy Hochul’s got the right idea—in the Executive Budget, as part of her affordability agenda, she proposed a five-year extension of this essential incentive so communities are able to withstand the financial pressures that come with living here, making them more resilient.
Take Brooklyn, where at least 50 businesses have utilized REAP, creating over 3,500 new jobs. Not only is that impacting those thousands of New Yorkers and their families, it’s also creating economic activity for Brooklyn’s bodegas, restaurants, and other businesses, beginning a positive loop that strengthens the borough.
And those businesses themselves are contributing to Brooklyn’s strength: the Architecture Research Office used REAP to relocate to a larger office space in Willoughby Square, and went on to design a brand new building for the Khalil Gibran International Academy, New York City’s first Arabic-English dual-language public school.
In Queens, REAP has also had profound impacts. Data from the Long Island City Partnership shows that the program has led to an estimated 3,000 new jobs in just the one neighborhood, with many stemming from the manufacturing industry.
And as the South Bronx is seeing a boom in development and activity, REAP is helping businesses match the growing needs there. From office jobs to manufacturing jobs, REAP helps diversify our economic strength to make it more resilient both citywide and across each borough.
Gov. Hochul understands that without adequately supporting our small businesses, our communities will suffer— which is why she doubled down on her promise to support business owners in New York City and introduced the Relocation Assistance Credit for Employees (RACE) program.
If implemented, RACE would incentivize large-scale relocations to older, underused office spaces to bolster the citywide economy. This would work hand-in-hand with REAP, elevating additional businesses, neighborhoods, and industries.
However, the state legislature hasn’t stepped up to match the governor’s commitment. The criticism that it shuffles businesses within the city misses both the point, and the moment—our businesses will leave without the proper resources. While neither program was included in State Senate and Assembly’s one-house budget proposals, we are optimistic that our legislative leaders will recognize that we need to use every tool available to address our affordability crisis, and that REAP and RACE are important ones.
With the budget deadline approaching, it’s imperative that REAP and RACE be included. Investing in both of these programs means investing in more jobs, better affordability for our neighborhoods and a higher quality of life for all New Yorkers.
Randy Peers is the president and CEO of the Brooklyn Chamber of Commerce. Thomas Grech is the president and CEO of the Queens Chamber of Commerce. Lisa Sorin is the president and CEO of the Bronx Chamber of Commerce.
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