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March 4, 2016 Barrisons@aol.com

Queens Community and Business groups call upon Lawmakers to

Press Conference
Date: March 24, 2016
Place: Flushing House 38-20 Bowne Street, Flushing, NY 11354
Time: 11AM -1PM
*parking Central Parking, which is only 2 blocks away from Flushing House. 138th Street between 37th and 38th
Avenue GPS address to use:38-18 Union Street, Flushing
Dateline Queens NY, March 4, 2016: Queens Community organizations greatly appreciate the valuable

draw public attention to their plight. Soon debate will begin in the City Council to create legislation to stop the

market. Decades of vigorous real estate investment in commercial property combined with spirited bidding
between big banks and franchises for prime locations on busy shopping strips has produced a volatile rental
marketplace for our small business owners. Adding pressure to this unpredictable marketplace has been the
displaced businesses relocating in our borough (Queens) , landlords leaving storefronts empty, sometimes for
years, thus manipulating the market to gain the highest rent possible, and the usual speculators and profiteers
who view a breakdown in the marketplace as an opportunity to gain windfall profits.

Unlike residential tenants, in NYC commercial tenants have no rights when their leases expire. Therefore, the
outcome of an unstable and unpredictable commercial lease renewal process for all businesses has resulted in
most business owners unable to negotiate reasonable lease terms which would allow a reasonable profit. In a
long established businesses have been
forced to close, employees jobs lost, increased higher prices, lower wages, loss of valued services to customers,
stoppage of growth resulting in restricted job creation and a dramatic change in the integrity and
character of the community. Many small business advocates believe left unchecked, the sky high rents and the
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one sides unfair lease renewal process will slowly destroy our small businesses and once gone, will lead to a
major recession.
Our Queens businesses, being the largest employer of Queens residents, the foundation of our local economy,
and the primary stabilizing force of every neighborhood in Queens, must be preserved and protected from
unfair, manipulated or failed market forces. Therefore, we call upon all Queens lawmakers to make a priority to
find a real solution quickly, one which will level the playing field for our businesses when their leases expire,
and one which will allow them to again bargain in good faith to negotiate fair lease terms and make a
reasonable profit for their hard work and investment.

Queens Community organizations have the utmost confidence in our Queens lawmakers to come together to
find the best solution to save the futures of all Queens businesses and their employees. A real solution which
would protect our businesses from the dire consequences high rents are reaping on businesses in other
boroughs. For many years, long established businesses in Manhattan, many icon in status like Pearl Paints,
have been forced to close due only to exorbitant rent increases or real estate speculation. Or like in Washington
Heights where an entire block of Hispanic owners were given only month to month leases for four years until
they received a 30 day notice to vacate once the property was sold. bodegas where
unscrupulous landlords were extorting cash payments from mostly immigrant owners, under the threat of
throwing them out. Or on the Upper West Side of Manhattan with empty storefronts on every block where once
vibrant businesses flourished. Or in the Bronx where last year there was an increase of court evictions of
commercial tenants by 30% and where Zaros Bakery was successful for 56 years and willing to pay even a huge
rent increase but was denied even the opportunity to negotiate a lease renewal and instead was given notice to
vacate.

We believe strongly our Queens lawmakers share our appreciation and respect for our hard working small
or be treated unfairly from these sky high rents and unfair
lease terms being demanded . We hope they will make a priority of seeking only a real solution which restore
stability and integrity for our entire business community and protect our job creators. But also, will pass
legislation which would prevent any long established successful business, willing and able to pay a reasonable

business environment and is still the Gateway in NYC for entrepreneurs, especially immigrants, to invest in and
achieve the American Dream.

The future of Queens economy is at stake, therefore, we call upon the Mayor, Speaker and all Queens Council
Member to assure our small businesses receive an honest debate, not corrupted by political or special interests
influence. We call upon all progressive legislators to stand up to the undue influence of powerful special
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Special Tasks Force or Commissions hand picked by REBNY with one goal , to stall democracy and keep the
status quo.

Currently there are four proposals being considered by the City Council as potential solutions to stop the
closings of businesses due to exorbitant rent increases. (see below summary of each) All lawmakers who
proposed or plan on promoting any one of these proposals will be invited to attend to discuss the merits of each
proposal. All Queens Council Members who are calling for government action to address the small business
closings or unstable conditions of our economy caused by high rents will be asked to attend.

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business community.
1. Mediation without Arbitration give extension of lease with added time for a
business to find a new location to move.
Council Member Robert Cornegy, Chairman of Small Business Committee will be the
prime sponsor.
Manhattan President Brewer conducted a major study on small businesses and from a final
report recommended proposed legislation which will be introduced in the City Council by
Councilman Cornegy. Manhattan President Brewer, under the City Charter, can introduce
legislation in partnership with a Council Member.This proposal will give small businesses the
right to call for mediation with their landlords to negotiate new lease terms prior to their lease
expiring. This mediation is non binding. Under this plan the city would create a mediation
program that would kick in when a store nears the end of its lease. The landlord must by statue
negotiate with their tenant the new terms of the lease.
agreement they go before a mediator who tries to gain agreement between the parties. This
proposal does not offer binding Arbitration. What the tenant is entitled to if no agreement is
reached is a one-year lease extension with a rent hike of no more than 15%. This added year
will give the owners more time to find a new location to move to. The tenant must agree to
vacate the premise at the end of one year. The law will apply to only retail storefront locations
in NYC.

2. Small Business Jobs Survival Act: Gives busienss owners the right to renewal lease
and right to negotiate fair lease terms. City Council pending legislation first introduced in June
1986 by former Councilmember Ruth Messinger, present prime sponsor being CM Annabel
Palma. SBJSA only regulates the commercial lease renewal process.

For those business

on time, or did not conduct any illegal activity on premise, etc. they are entitled to the right of
lease renewal for a minimum 10 year lease. The bill protects all commercial leases : retail, arts,
manufacturing, professional , and not for profits.
How the process works:
Prior to the date the lease expires,
There are no government
formulas or interference in these negotiations. The bill encourages bargaining in good faith
and with mutual agreement the parties can arrive at any terms of a lease they agree upon. If
after a specified time the parties cannot agree on the new lease terms the bill requires both
parties to submit to non binding mediation. They will follow the industry standard practices
today in NYC in selecting a mediator to hear their case. All costs will be equally shared by
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both parties throughout the lease renewal process. If mediation fails to produce a mutual
agreement on the terms of the lease then the bill calls for the parties to submit to binding
Arbitration. The bill sets forth detailed guidelines for both parties to follow in selecting an
Arbitrator and gives leeway to the Arbitration process established by each Arbitration
Association. The bill establishes detailed criteria for the Arbitrator to follow in arriving at a
final decision. Most of these criteria are the same followed successfully during the 18 year
period 1945-1963 when NYC businesses were under Commercial Rent Control Law. The bill
levels the playing field for tenants, by given them a bit of leverage in negotiations, which will
give the business owners the opportunity to protect their investme

Comparison of both proposals (Cornegy vsSBJSA):

S.B.J.S.A.
Gives right to renewal lease
Gives minimum 10 years and stay
Right to Mediation that is not binding
Gives binding Arbitration for final decision
Applies to all commercial tenants
CM Cornegy proposal
No right to renewal lease
Gives one year extension then move
Right to Mediation that is not binding
No Arbitration: landlord makes decision
Applies to only retail storefronts

3. Tax incentives to landlords to not raise commercial rents: A City Council

resolution introduced by Small Business Committee Chairman Robert Cornegy. A resolution
calling for NYS lawmakers to pass legislation establishing a property tax credit for commercial
landlords who voluntarily limit the amount of rent increases to small business owner tenants
upon lease renewal. Similar incentives exist in the residential rent context, for example in the
form of the Senior Citizen Rent Increase Exemption ("SCRIE") program under which the rent
of qualifying senior citizens is frozen at a certain level, thereby effectively providing them with
an exemption from future rent increases, and compensates the landlord by providing him or her
with a property tax abatement credit equal to the amount of the senior citizen's future rent
increases. Today, the determination of rent increases for residential property is set by special
committees and regulated by statues. Commercial rents have no such guidelines and are set by
market rate only. How the increased commercial rates would be determined and how much tax
credit a landlord would be given is unclear. This statue is voluntary for the landlord.

4. The use of Zoning reform to stabilize a business strip: Changes in the zoning
laws that would help small businesses to compete with large chain businesses and bank
branches for commercial street space in certain commercial strips.
Formula ( or chain) Retail Controls passed in 2004, restricted the proliferation of chain retailers
and restaurants. Under their law, chains are considered conditional uses throughout most of the
city and must be approved by the Planning Commission on a case-by-case basis. This law was
successful in controlling the number and size of franchise businesses in a specific commercial

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strip and limits the number of national chain businesses that can concentrate in any commercial
strip. Recently, San Francisco broadens the definition of chain business to include any business
with more than 11 locations worldwide or where 50% of the business interest is controlled by
a formula (chain) retailer. Presently in force in NYC is a zoning law for three streets in Upper
Manhattan (Amsterdam Columbus and Broadway). The zoning changes apply only to new
leases and do not regulate overall store size or type of retail ownership. The goal is to maintain
multi diverse retail venues on a commercial strip by regulating block fronts, which are now
dominated by banks.