Hevesi: "We have to make NY business friendly."

Real Estate Weekly, March 23, 1994 by Lois Weiss

"We have to change New York into a city that is business friendly," said New York City Comptroller Alan G. Hevesi, gamering applause from his real estate audience. Hevesi gave an overview of his budget suggestions and monitoring focus to a joint luncheon meeting of members of the Building Owners and Managers Association and the Associated Builders and Owners of Greater New York. The luncheon was held during the successful Buildings New York show at the New York Hilton earlier this month, leading ABO Co-chairman, Robert E. Selsem, to remark that the healthy exhibitor turnout was a leading indicator of better economic times.

Hevesi also discussed the city's new positive attitude towards business.

The comptroller pointed to the 33 percent reduction in jobs in the real estate industry - some 40,000 people over the last few years - as the economy declined in New York City. "We're coming out of it slowly," he noted, predicting that because the recovery is not a "great boom" it could mean stability in the long run. He expects, however, that any growth in city jobs will come from the private sector.

Hevesi is also in accord with Mayor Rudolf Giuliani in making reductions in government and taxation. Budget snips being recommended by Hevesi and Giuliani affect the commercial rent and occupancy tax, the unincorporated business tax, and sales tax on items of clothing selling for under $100.

Hevesi also proposed that the money saved with other tax cuts be used to reduce the 14 percent surcharge on personal income tax because, he says, it would be fairer than the elimination of the 12.5 percent surcharge on income over $25,000 that the Mayor is requesting. While helping businesses, Hevesi's proposals would reduce income for the city by $160 million less than the mayor's package, he said.

Hevesi intents to increase the number of audits and monitoring of agencies, noting "the threat of a competent audit team tells managers to clean up their act." Later, he told REW he was not interested in pursuing further audits of the Dept. of Finance or the Tax Commission, remarking that former ComptrOller Elizabeth Holtzman had targeted them needlessly to the exclusion of other agencies. Instead, among other projects, Hevesi intends to make sure the city is getting the best return on its money from the Board of Education and the Health and Hospitals Corporation, which he hoped "would stop some of these budget shenaniganS."

He has also reorganized the audit bureau so as to have more people available for audits.

Explaining that only the toughest, smartest, adventurous and desperate immigrants make it to our shores, he observed, "We are the greatest city in the world and we are made up of the smartest people in the world." These people work hard, often at two or three different jobs and also begin their own companies, he said. Emphasizing the new attitude in the city toward business, Hevesi implored the gathered executives, "Don't leave the city. Don't take your business elsewhere."