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Overview
Neighborhood
business activity has traditionally related to the predominantly residential
character of East Harlem. As the population decreased sharply in the past
two decades, so did the vitality and potential for local businesses. However,
Third Avenue and 116th Street remains a regional attraction for retail activity.
The estimated annual consumer purchasing power of the residents of East
Harlem represents about $370 million. (12)
Today, activity in the district is dominated by the concentration of health
care institutions which currently provides more than 15,000 jobs and draws
visitors and patients into the area. This activity produces a demand for
numerous support services.
Employment Data
In
East Harlem, approximately 1,000 employers provide jobs for over 2 1,000
workers. A review of the New York State Department of Labor's classification
of employers in the district (Table 6) shows that while nearly equal numbers
of establishments are engaged in wholesale/retail trades (38 percent) and
service industries (37 percent), the service firms employ more than six
times as many employees (79 percent compared to 12 percent). Among the 365
service firms, 25 percent provide social services, 15 percent provide health,
and 10 percent provide education.
Like other communities in New York, jobs are desperately needed for East
Harlem's workforce. Over the years, residents have witnessed millions of
dollars being spent on capital projects, private and nonprofit developments
in East Harlem with very few jobs, construction or permanent, offered to
qualified East Harlem residents.
Health Care Industry
The dominant industry in the district is health care service which employs
over 15,000 people in the larger institutions alone (see Table 7). Also,
there is a multitude of health service workers employed in home health care
and the variety of smaller facilities throughout the district such as the
Boriken and Union Settlement health care centers.
In New York City, the health care sector as a whole employed over 266,000
people in 1991 making it one of the city's fastest growing employment sectors.
According to the 1990 Census, 5,3 00 people (16 percent) of employed workers
in East Harlem worked in a health service
(12 The purchasing power was based on MY% of the annual household income
reported in the 1990 Census. The figure is prior to the opening of the Pathmark
on 125th Street.
Table 6
Classification of Employers in East Harlem
|
SIC Classification
|
Number
of Employers
|
Percent
of Employers
|
Number
of Employees
|
Percent
of Employees
|
|
Construction
|
70
|
7%
|
540
|
3%
|
|
Manufacturing
|
36
|
4%
|
242
|
1%
|
|
Transportation/Communications
|
32
|
3%
|
243
|
1%
|
|
Wholesale/Retail
(13)
|
378
|
38%
|
2,579
|
12%
|
|
Finance/Insurance/Real
Estate
|
97
|
10%
|
832
|
4%
|
|
Service
|
365
|
37%
|
16,436
|
79%
|
|
Unclassified
|
7
|
1%
|
undisclosed
|
-
|
|
Total
|
985
|
100%
|
20,879
|
100%
|
SOURCE:
New York State Department of Labor, 1992.
Table
7
Health Care Industry (15)
|
Hospital
|
Number of
Employees
|
|
Mt. Sinai Hospital
Center
|
7,731
|
|
Metropolitan
Hospital Center
|
3,767
|
|
Cardinal Cook
Medical Center
|
1,400
|
|
North General
Hospital
|
1,000
|
|
Kirby Forensic
Psychiatric Center
|
320
|
|
Manhattan Psychiatric
Center (2)
|
1,700
|
|
Total
|
15,918
|
SOURCE:
1994 Hunter College Planning Department Telephone Survey and 1995 Manhattan
Borough President Telephone Survey
15 Additional employees are found in the Settlement Health Care and
Northern Manhattan Nursing Home.Wholesale/Retail trades includes:
Food Stores with 87 employers and 331 employees, Apparel/Accessory
establishments with 53 employers and 172 employees; and Eating/Drinking
establishments with 74 employers and 469 employees.
Service Industry includes: Health-Related Industries with 55 employers
with an undisclosed number of employees, Social Service Industries
with 90 employers and 4,754 employees, and Educational Industries
with 37 employers with an undisclosed number of employees.
The fact that four out of five local jobs are currently found not only
in health service, but in the overall nonindustrial service sector, indicates
the importance of focusing on education and job training for both displaced
industrial workers and young people entering the work force.
Most labor projections estimate that growth in new jobs will continue
to be heaviest in the service and professional/technical sectors and will
continue to decline in manufacturing, and that by 2000 more than 66 percent
of all new jobs will require at least some college education.
Neighborhood Retail
The
neighborhood commercial corridors characterized by brisk retail activity,
infrequent store vacancies and private ownership, are located in within
a block of each subway station, and along East 116th Street between Park
and Second Avenues, and on Third Avenue from East 102nd to East 124th
Streets.
In a wider circle the CIVITAS study found more than 300 vacant storefronts.
These reflect the consolidation of retail activity into larger stores
(e.g., busy supermarkets replacing the "bodega"), fewer "mom and pop"
stores.
The 50,000 square foot Pathmark supermarket on East 125th Street between
Lexington and Third Avenues may spur revitalization on the eastern end
of 125th Street. Pathmark also falls within the boundaries of the Federal
Empowerment Zone and the NYS Economic Development Zone.
Economic Development Projects
There
a variety of economic development projects in East Harlem. These include:
Julia de Burgos Latino Cultural Center: A preexisting, five-story former
public school at 1680 Lexington Avenue between East 105th and East 106th
Streets was renovated to house a cultural center. A number of Latino cultural
groups may occupy space in this building and share administrative facilities
in an incubator setting. The center opened in the Fall of 1998.
Pathmark: A 50,000 square foot supermarket opened in April of 1999 on
the south side of east 125th Street between Lexington and Third Avenues.
It includes 5,000 square feet of retail space and underground for 150
cars.
La Marqueta: Frequent suggestions have been offered for the renovation
and expansion of an enclosed food market located underneath the elevated
Metro North railroad tracks on Park Avenue between East 111th and East
119th Streets. They have included a Spanish style market, a Caribbean
market, the creation of a day care center, open-air market, outdoor performance
space and movie theater. Alternative uses could include a local crafts
market; social uses, as a rentable ballroom and catering establishment;
and recreation, as a health club.Vacant or crumbling sites on East 125th
St. The Corn Exchange site just west of the Metro North Station
at 125th St and Park Avenue and the vacant comer of Third Avenue, both
prime locations, are awaiting good and feasible plans for development.
East River Plaza proposal on a former steel mill. The owner's plans
including expansion of the original site for a large retail mall is warmly
supported by advocates of economic activity, but has aroused extensive
neighborhood opposition.
125th Street Theater District, including restaurants, five music
and shows, a multiplex movie theater, and sufficient parking on behind
on East 126th Street has received much local support. The 24-hour Pathmark
would be across the street.
A special auction program (the Neighboring Industrial-Commercial Owners
Program) is available in designated commercial and manufacturing zones
to facilitate the sale of city owned vacant properties to businesses interested
in expanding there.
East Harlem Community Initiatives
Several
local initiatives have been promoted by various groups within the East
Harlem community. They include:
*
Financial services and outreach such as the establishment of an East Harlem
small business revolving loan fund, the creation of a fair banking effort
for nonprofits and the establishment of an East Harlem credit union;
*
small business development for not-for-profit service providers and for-profit
businesses with emphasis on financial, technical and managerial assistance;
*
monitoring of jobs and services to encourage participation of local residents
and locally
owned companies;
*
monitoring of banking and reinvestment policies related to the Community
Reinvestment Act; and,
*
technical advice and seed money for franchise development.
El Barrio Theatrical District using the available theaters at the Julio
de Burgos Center, the East Harlem Multi-Service Center at 120th St, the
Red Carpet Theater in Taino Towers, and the Hecscher Theater at El Museo,
del Barrio on Fifth Avenue.
* Site for a Latin Music Museum
* A hotel Industrial and Commercial Incentive
Program (ICIP)
This program encourages building or renovation of commercial and industrial
facilities to retain and create jobs. Location determines the amount of
tax benefit for each commercial property. Regular exemption for tax purposes
would mean a project could receive up to 100% tax exemption for the first
8 years with a phased out toward payment of full taxes the following for
4 years. Special exemption areas, including Manhattan north of 96th Street,
provide for 100% exemption for the first 13 years phased over the following
9 years.
Upper Manhattan Empowerment Zone
In
December 1994, New York City was designated as one of the six urban Empowerment
Zones. Businesses located within the zone are eligible for a number of
benefits such as employee wage credits, accelerated depreciation and bond
financing. Block grants are also available for community developments
projects. The New York City Empowerment Zone encompasses portions of Upper
Manhattan and the South Bronx. A significant portion of East Harlem is
located with the Zone (see Map).
$3 00,000 million was designated for the Empowerment from over the 10
year period (1994-2004).
The vacant property within the East Harlem's Portion of the Empowerment
Zone has the potential to produce thousands of jobs. The vacant storefronts
could be converted into professional technology offices, with residence
in the rear.
New York State Economic
Development Zone
In
1988, the New York State Department of Economic Development designated
sections of East Harlem as an Economic Development Zone (EDZ). The EDZ
map (see Map) shows the existing and
proposed EDZ boundaries.
Upon State certification, businesses are eligible for wage, utility and
investment tax credits and sales tax relief They are also eligible for
real property tax exemptions and land tax abatements from New York City,
as well as reductions from local gas, electric and telephone companies.
Significant progress has been made by the City's EDC to fill that zone
with local expanding businesses.
The Local Development Corporation Del Barrio is the administrator of the
East Harlem EDZ; its broader goal to monitor and develop the area's economic
opportunities. So far, inappropriate zoning designations and the amount
of the required financial commitment has inhibited participation in this
program. For example, the Metro North viaduct imposes a number of disadvantages.
Federal law prohibits the expenditure of federal funds for subsidized
housing within 100 feet of elevated tract.
According to 1991 employment figures, establishments in the East Harlem
manufacturing zones bounded by East 126th Street, Park Avenue, East 132nd
Street and First Avenue contained 482 jobs: 300 industrial (62 percent)
and 182 nonindustrial (38 percent). Among the industrial jobs, 120 in
manufacturing (40 percent); 74 were in construction (25 percent); 39 in
transportation, communications & public utilities (13 percent); and
40 in wholesale trade (13 percent).
NEIGHBORHOOD
STRATEGY RECOMMENDATIONS
I. Economic Development
1. The largest employer in East Harlem is the health care industry. Priority
must be the expansion of the health care industry especially regarding
future employment and economic development opportunities. The City, State
and federal government must assist the area's medical institutions in
the development of health care services and products and promote them
as primary markets regionally and nationally. The State and federal government
must protect against the impact on employment opportunities that pending
cuts to Medicaid will have on the area's health care industry.
2. All projects that require City approval should hire at least 25% of
their employees from the East Harlem community. East Harlem's Employment
and Economic Development Committee would be responsible for monitoring
the compliance of this employment requirement.
3. Promote street-level retail space in new and existing housing structures
along the commercial
corridors.
4. The City must provide small businesses with comprehensive business
development technical assistance.
5. The State should modify the criteria of the New York State EDZ to include
light manufacturing,
retail, business, commercial and social purpose development.
6.
The EDZ boundaries should be coterminous with the boundaries of East Harlem
so that all businesses in the district could benefit from the EDZ technical
business assistance and state tax initiatives. The EDZ should also include
East Harlem in the "In Place Industrial Parks Program" as found in all
other New York City EDZs.
Other
Sections of the 197-A Plan
Introduction
History of East Harlem
Demographic and Socio-Economic Profile
Land Use and Zoning
City-Owned Vacant Property
Housing and Urban Renewal
Economic Development
The Waterfront
Tranportation and Infrastructure
Institutional and Historical Resources
CrossRoads
Non-Profits At Work In East Harlem
For Profits At Work In East Harlem
Participants
Maps (all pertain
to Community Board # 11)
The maps are in Gif format. File sizes are big, but you can better see
the details in the maps.
Community
Board District # 11 (162K)
Population of Race and Ethnicity by Census
Track (679K
Land Use (Color 579K)
Zoning Map (244K)
Major Housing Developments (329K)
Urban Renewal Areas (328K)
Empowerment Zone (630K)
Economic Developement (628K)
Public Transportation (672K)
Historic District and Landmarks
(610K)
Crossroads (589K)
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