Action Alert: Will the Small Business Survival Act Help NYC Arts Nonprofits?
Friday, June 26, 2009Pure Politics
This announcement — and I encourage of all you to read this entire post — comes courtesy of Norma Munn, who is chairperson of the New York City Arts Coalition. Pending legislation, if passed, would have a direct, immediate effect on nonprofit arts organizations, among many other types of small businesses. If you are unable to attend the event, you can also email a short comment to JMcNearney@council.nyc.gov for inclusion in the written testimony. This is important as all comments will be sent to the Council members supporting the bill.
Here’s the information below (And here is a link to the actual text of the draft legislation):
Help end the crisis that New York City’s small businesses face by attending a public hearing on Councilman Robert Jackson’s Small Business Survival Act.
Public Hearing: Show your support to save our city’s small businesses, art community, manufacturers, neighborhood character and not for profit organizations from the abuses and unfair excesses of the unregulated commercial lease renewal process. The Small Business Survival Act would give rights and protection to the businesses/organizations when it comes time to renew their commercial leases.
Anyone can come to testify or just attend to give support for the passage of the Small Business Survival Act.
What: A Press Conference followed by a Hearing on the Small Business Survival Act before the City Council’s Small Business Committee
When: Monday, June 29th Press Conference at 12pm- noon immediately followed at 1pm -3pm for a Hearing inside City Hall
Where: Press Conference on steps of City Hall, Hearing at City Council Chambers 2nd floor at City Hall.
Bring back “Negotiations in Good Faith” between the landlords and tenants.
Stop the extortion of small business owners
Stop the rent gouging
Stop the excessive “pass alongs”
In addition, Munn included a detailed document further explaining the legislation and its predicted impact in detail:
Small Business Survival Act
Intro 0847-2008Since the mid 1980’s, the creators of the majority of new jobs in New York City has come from the small business sector. This 25 year trend will not only continue but increase with the decline of the financial sector. What the small business sector desperately needs to save the jobs it has created and be able to continue to create future jobs will be the protection and rights this bill offers.
The passage of this bill would be the first time since 1963 (45 years) that commercial tenants would have some rights when they go to renew their leases. From 1945 to 1963 most of our city’s businesses were protected under New York State Law when they renewed their leases. Today, our businesses need this right and protection to survive the present commercial renewal lease process which has resulted in unacceptable numbers of sound businesses being forced to close due only to unjust, unreasonable, and oppressive lease demands. These business failures are jeopardizing the jobs of tens of thousands of hard working New Yorkers. The years of unchecked real estate speculation, have greatly weakened the ability of NYC businesses to sustain growth and expand employment opportunities. This bill will restore order in the commercial marketplace and bring back a rational context for businesses to successfully operate and compete, and thus preserve the much-needed employment opportunities for New York City workers.
SUMMARY
- To establish a lease renewal process which is fair to all parties, one which would give the tenants enough rights so that they can again bargain in good faith with the landlords to arrive at fair least terms.
- To keep government out of the decision making process and on the sidelines during the lease renewal negotiation process. The only voices to be heard in the bargaining process would be between the tenant and landlord, and only from an arbitrator when they fail to reach a mutual agreement.
- To create a cost effective system for commercial lease renewals, one where all the costs are divided equally between and landlord and tenant. Also, one where no taxpayers dollars are spent, the only costs would go to a not-for-profit arbitrator organization.
- To create a quick step by step process to arrive at fair lease terms. One which is controlled by both parties and can be stopped at anytime by mutual consent.
- To create a process which takes into consideration the unique nature of every business and every business community, where the arbitrator’s decision is based upon a “case by case” situation.
What abuses would be stopped by this bill?
- Put an end to illegal extortion of commercial tenants who are forced to pay money “under the table” to keep their leases.
- Put an end to “rent gouging” by greedy landlords
- Put an end to those landlords who refuse to even negotiate a lease renewal for the tenant.
- Put an end to those landlords who refuse to “bargain in good faith” with their tenants.
- Put an end to those landlords who work deals behind the backs of the tenants to take over their successful businesses.
- Put an end to those landlords who want to pass along all their own costs and responsibilities onto their tenants to pay.
- Put an end to those landlords who only want to offer short term leases to the tenants so they can be in a better position to speculate on the property.
- Put an end to excessive security deposits without interests going to the tenants.
What are the goals of this Bill ?
- Protect business tenants from unreasonable lease demands, thus keeping successful businesses from going out of business due only to rent gouging or unfair lease terms.
- Stop the lost of jobs resulting from excessive rents or business failures due only to exorbitant lease demands.
- Put stability and predictability back into the free marketplace, which would result in encouraging business expansion and the creation of more jobs.
- Give businesses longer leases, which would enable them to expand, create jobs, and take advantage of the loan and assistance programs in the private sector as well as from government agencies. Longer leases promote economic growth.
Who is protected under this Bill?
- All manufacturing businesses
- All Not-for-Profit organizations
- All performing arts and theater groups
- All retail businesses
- All service businesses
- All professional medical offices and businesses
- All commercial tenants in New York City
How long is the length of Commercial Leases?
To encourage stability and growth, the minimum length of lease is 10 years, but a shorter or longer length can be established if both parties agree.
The passage of this Bill would create a fair commercial lease renewal process which would save existing jobs as well as create a healthier business environment to encourage business expansion and thus create more new jobs.
This is not commercial rent control! Not a single business of the city’s est. 186,000 would government set the rent for. This bill is based only upon mediation and arbitration and the bill establishes only the guidelines for the process of commercial lease renewals. Every decision is based upon a “case by case” situation. The final rent charged would be determined only by the negotiations between the landlord and tenant or an arbitrator if they fail to reach an agreement.
This bill does not interfere in the general marketplace, but instead focuses only upon existing commercial leases entering into the renewal phase. A landlord can charge whatever they wish in the open market for empty businesses. They have no guidelines or regulations to follow in deciding their rent demands.
This bill’s goals and merits will be reviewed periodically by the New York City Council and changed when called for.
[...] This post was Twitted by jodisc [...]
WOW – it’s about time. We just opted to move our Studio because of outrageous lease conditions!. Let’s get this passed!
[...] Action Alert: Will the Small Business Survival Act Help NYC Arts … [...]
[...] Action Alert: Will the Small Business Survival Act Help NYC Arts … [...]
I SPPORT THIS BILL BECAUSE SMALL BUSINESS
IS THE BACK BONE OF NEW YORK CITY.
MOSES M.BILITY
THE HONEST VOICE OF PEACE
NEW YORK CITY
You are NUTS!!!!!
Besides being illegal – it is very dangerous to small business – if this bill passes landlords will have a simple solution – they will no longer rent to “small businesses”!!!!
Why would a LL rent to a small business where future rent increases will be effectively limited, and add tons of extra expenses and hastle (arbitrators, mediation, time, lawyers, potential litigation, etc…) when you could more easily rent to a large regional, national or international company/chain – that pose no such obstacles.
And since this only applies to lease renewals, if a LL agrees to rent to a small businesses will find that their intial rents are astronomical and the final year will have massive increases (so as to force late rents and/or early renegotiation)
Please wake-up and enter the real world.
What’s nuts is being slavishly pro-landlord. You’re part of the problem.
Leonard – did you read the legislation??? It isnt a matter of being pro-landlord – this bill would kill small business in NYC, it gives all advantage to larger businesses (except LL).
the peorson whose view is slavish is yours – you assume because the bill hurts LL then it must help tenants – but in the long run it only helps large tenants because it makes small buisness/non-profits, etc…. a class of tenant that is too expensive.
I disagree.
Fine – then please tell me – and all other small buisness owners; small non-profits; artists; etc….
1. Do you agree that these rent control laws are not enforceable against organizations of over 100 employees?
2. If yes, then do you agree that (all other things being equal) a LL would prefer to rent space to a large organization not subject to this proposed law (btw things are not equal – even w/o such a law, LL generally prefer larger/national tenants)
3. If yes, what is in this bill that would prevent discrimination by LL against smaller retail/non-profits/artist/solo operations/etc? (either through higher initial rents and/or an outright refusal to rent to such prospects)
4. And if you agree that this bill offers no such protection, please explain why such a bill will not harm all small organizations seeking new space (I aknowledge it will help those small organizations who are in-place at the time of the bills implementation, but only if they never move)
Please tell me your full name and we’ll take it from there.
Why?
Well you have my name – so??? are you going to answer my questions? You accused me of being slavishly pro-landlord, and yet when I try to discuss the issue, you duck and run…..maybe the problem is your position is not borne out by the facts.
I am under no obligation to debate you, acknowledge you or publish your ridiculous comments, though obviously I have. The post you are referring to was published June 26 — if you think I’ve focused on little else since that date and can, at your beckeoning, suddenly launch into a debate with you, perhaps it is you who needs to wake up.
I asked for your name because if I were to debate you, I’d at least want to know with whom I was debating. Moreover, your questions make very little sense: you’re building an argument based on biases and an agenda that I cannot and will not share. Responding to you is essentially pointless.
Indeed, choosing not to debate you isn’t ducking and running — those are the bullying arguments of, well, a bully, not someone open to a substantial exchange of views. I clearly said I disagreed with you. I still disagree with you. I let you have your view. You will let me have mine. If you disagree, I encourage you to create your own site and to express your Constitutional rights in that forum.