LDCMT-26-1619
ATTACHMENT 1
DEFINITIONS
Apple …………………..
Apple Industrial Development Corp.
Armand ……………….
Armand Corporation d/b/a Armand of New York
BAT …………………….
Brooklyn Army Terminal
Bovis …………………..
Bovis Lend Lease LMB, Inc.
CDBG ………………….
Federal Community Development Block Grant
CDBG-DR Funds …….. Federal Community Development Block Grant-Disaster Recovery Program
funds
CEQR …………………..
City Environmental Quality Review process
City DEP ……………….
New York City Department of Environmental Protection
City DOT ……………….
New York City Department of Transportation
City Parks ………………
New York City Department of Parks and Recreation
City Planning …………..
New York City Department of City Planning or City Planning Commission
CM ……………………..
A construction manager
CM Contract …………..
A construction management contract
DCAS ………………….
New York City Department of Citywide Administrative Services
EIS ……………………..
Environmental Impact Statement
ESDC ………………. … New York State Urban Development Corporation d/b/a Empire State
Development Corporation
FEMA …………………..
Federal Emergency Management Agency
FM ………………………
A facilities manager
FM/CM Contract ………
A facilities management/construction management contract
Funding Source
Agreement ……………..
Gilbane…………………
HDC ……………………
Any agreement necessary to obtain funds for the Project, including IDA
Agreements
Gilbane Building Company
New York City Housing Development Corporation
HPD ……………………
New York City Department of Housing Preservation and Development
Hunter Roberts ……….
Hunter Roberts Construction Group, L.L.C.
IDA ……………………..
New York City Industrial Development Agency
IDA Agreement ……….. Agreement with IDA pursuant to which IDA retains NYCEDC to accomplish
all or part of the Project and reimburses NYCEDC for the costs of the work
LiRo …………………….
LiRo Program and Construction Management, PE P.C.
LMDC …………………..
Lower Manhattan Development Corporation
McKissack ……………..
The McKissack Group, Inc. d/b/a McKissack & McKissack
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MOU ……………………
A memorandum of understanding
NYCEDC ………………. New York City Economic Development Corporation, survivor of a
November 1, 2012 merger of a local development corporation (the “LDC”)
named New York Economic Development Corporation with and into New
York City Economic Growth Corporation. References to NYCEDC prior to
such merger are references to the LDC.
NYCHA ……………….
New York City Housing Authority
NYCLDC ……………….
New York City Land Development Corporation
Noble Strategy ………...
Noble Strategy NY Inc.
OMB ……………………
New York City Office of Management and Budget
Port Authority …………
The Port Authority of New York and New Jersey
RFP ……………………
Request for Proposals
Sanitation ……………..
New York City Department of Sanitation
SBS …………………….
New York City Department of Small Business Services
SEMO ………………….
New York State Emergency Management Office
SEQR …………………..
State Environmental Quality Review process
Skanska ……………….
Skanska USA Building Inc.
State DEC ……………..
New York State Department of Environmental Conservation
State DOS …………….
New York State Department of State
State DOT ……………..
New York State Department of Transportation
State Parks ……………
New York State Office of Parks, Recreation and Historic Preservation
Tishman ……………….
Tishman Construction Corporation of New York
Turner ………………….
Turner Construction Company
ULURP …………………
Uniform Land Use Review Procedure
EXHIBIT A
LDCMT-26-13503
SEAPORT COASTAL RESILIENCY PROJECT
Board of Directors Meeting
September 28, 2023
Project Description: Design and construction management services and
related services for improvements to address sea
level rise to 2100-level and 2050-level storm surge
events and resultant flooding in the Seaport District of
Manhattan
Borough: Manhattan
Types of Contracts: Design contract, CM Contract, force account
agreement and special inspection contract, and any
needed Funding Source Agreements, for the Project
Amounts to be Approved: Up to $228,800,000 in aggregate for the Project, of
which it is anticipated that approximately $23,000,000
will be used for the design contract, approximately
$1,000,000 will be used for a new special inspections
contract or for services under a then existing
NYCEDC special inspections retainer contract,
approximately $400,000 for a force account
agreement with the Metropolitan Transportation
Authority and/or an affiliated entity (“MTA”), and all or
most of the remaining balance for the CM Contract
Types of Funds: City Capital Budget funds, FEMA Building Resilient
Infrastructure and Communities funds, and funds
provided by the tenant under a Seaport Marketplace
lease to support coastal resiliency improvements to
be implemented in the Seaport area
Procurement Methods: Publicly advertised RFPs for (a) the design contract,
and (b) the special inspection retainer contract (if a
new special inspections contract is to be used),
competitive sealed proposals for the CM Contract and
sole source for the MTA force account agreement.
The specific contractor for the new special inspections
contract and the selected CM will be approved by the
President or an Executive Vice President of NYCEDC
Agreements to be Approved:
• A consultant contract and any necessary amendments thereto with AECOM
USA, Inc. (the “Design Contract”) to provide design and related services for
LDCMT-26-13503
the Project;
• A CM Contract and any necessary amendments thereto with the selected CM
(the “Project CM Contract”) to provide CM and related services (including pre-
construction, construction, and post-construction services) for the Project;
• A special inspections contract and any necessary amendments thereto (the
“Special Inspections Contract”) for the Project if a new agreement is being
entered into;
• A force account agreement and any necessary amendments thereto (the
“MTA Agreement”) to be entered into with MTA for MTA to provide project
accommodation and related services as a result of Project work being
undertaken by NYCEDC neighboring MTA facilities, including underground
subway tunnels; and
• Any needed Funding Source Agreements.
Scope of Work: The Seaport Coastal Resiliency Project is located along the waterfront
by the South Street Seaport District (approximately as shown in Attachment A) with tie-
ins to the Brooklyn Bridge-Montgomery Street Coastal Resilience Project on the north
and to the vicinity of John or Fulton Street in the south, in order to provide protection
against sea level rise utilizing an elevated waterfront structure and some upland grade
raising while maintaining universal access to the waterfront. The intended elevation will
ensure protection from 2050-level storm surge events and 2100-level sea level rise.
The Project also includes reconstruction of the existing New Market Pier to a higher,
protected elevation that integrates with adjacent properties for flood control.
A portion of the $228,000,000 in this item for the Project may be used for the Project for
other small contracts that are of a size that does not require Executive Committee
approval and to fund Project work under other existing retainer agreements (in addition
to possibly work under an existing special inspections retainer) up the remaining
amount for which those retainers have been previously authorized.
Proposed Resolution: To authorize the President and any empowered officer to enter
into the Design Contract, the Project CM Contract, the Special Inspections Contract, the
MTA Agreement, any needed Funding Source Agreements, and any needed
amendments to these agreements, and to make other Project expenditures,
substantially as described herein.
Relevant Staff: Andrew Abend, Project Director, Capital Program
Kathleen Chan, Vice President, Capital Program
Kathryn Prybylski, Senior Vice President, Capital Program
Michael Barone, Senior Counsel, Legal
Project Code: 10465
LDCMT-26-13503
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EXHIBIT B
LDCMT-26-13512
USAGE AGREEMENTS WITH CARNIVAL CORPORATION, NCL (BAHAMAS) LTD. and
MSC CRUISES SA
Board of Directors Meeting
September 28, 2023
Project Description: A usage agreement with each of Carnival Corporation d/b/a
Carnival Cruise Lines or an affiliated entity ("CCL"), NCL
(Bahamas) Ltd. or an affiliated entity (“NCL”), and MSC
Cruises SA or an affiliated entity ("MSC"), each of which
operates cruise lines (each a "Cruise Line," and collectively the
"Cruise Lines")
Boroughs: Manhattan and Brooklyn
Type of Contracts: Cruise terminal usage agreements
Procurement Method: Sole source
Contractor: CCL, NCL and MSC
Agreements to be Approved: Three usage agreements (individually, an "Agreement," and
collectively, the "Agreements"), one between NYCEDC and CCL, one between NYCEDC and NCL
(being an amendment and restatement of an existing usage agreement), and one between NYCEDC
and MSC
Scope of Work/Background: NYCEDC manages both the Manhattan Cruise Terminal (''MCT"),
located on the Hudson River between 47th and 53rd Streets in Manhattan, and the Brooklyn Cruise
Terminal ("BCT"), located at Pier 12 in Red Hook, Brooklyn (collectively the "Cruise Terminals").
The Cruise Terminals are operated for NYCEDC through a lease and operating agreement,
respectively, with Ports America, Inc.
As part of its management of the Cruise Terminals, NYCEDC proposes to enter into long term
usage agreements with each of the Cruise Lines to bring stability and growth to the City's cruise
program. The usage agreements commit the Cruise Lines to bring a guaranteed volume of passengers
to the Cruise Terminals in exchange for guaranteed berthing space at the Cruise Terminals.
NYCEDC has been working with the Cruise Lines to secure additional commitments as well,
including emission reductions, local vendor sourcing, workforce development, educational
partnerships, capital contributions to fund infrastructure improvements at the Cruise Terminals and
contributions to a community development fund. In addition to guaranteed berth space, the
Agreements will provide volume incentives and discounts on the port facility charges to the Cruise
Lines. Each Cruise Line will give a separate guaranty of passenger volume for each year.
CCL's usage agreement expired on December 31, 2017 and since then CCL has been
operating without guaranteeing passenger volumes.
NCL entered into a new usage agreement on January 1, 2018 which is now being amended and
restated, and which includes a guarantee by NCL to increase passenger volumes, along with
additional commitments.
LDCMT-26-13512
MSC has operated from the City since 2018 without a usage agreement guaranteeing passenger
volumes.
The COVID-19 pandemic devastated the cruise industry, and effectively shut down the industry for about
two years. In March 2022, the cruise industry resumed operations and by year’s end recovered to
approximately 86% average occupancy.
The Agreements with the Cruise Lines will be on substantially the following terms:
Term: All three agreements will be effective as of January 1, 2023. The CCL Usage Agreement will
have an initial term of three years and will have one five-year renewal option, for a total potential
term of eight years. The NCL amended and restated Usage Agreement will have a term of 10 years
from January 1, 2023 with one five year renewal option, for a total potential term of 15 years. The
MSC Usage Agreement will have an initial term of 15 years with six five-year renewal options, for a
total potential term of 45 years.
Facility Usage Fees: Effective as of January 1, 2023 there are facility charges calculated as a
bundled dockage and wharfage rate (the "Bundle Rate"). The initial Bundle Rate effective as of January 1,
2023 includes a wharfage fee of $27.69 per passenger embarking, disembarking or in transit at the
Cruise Terminals. There is no dockage fee charged for the initial 24 hours period a vessel is berthed.
After the initial 24 hours, a daily dockage fee of $0.14 per gross registered ton is charged for a vessel.
The Bundle Rate and dockage fee may be increased annually at no more than 3% per annum.
Passenger Guarantee: Each Cruise Line has agreed to an annual minimum passenger guarantee
based on a specific percentage of the projected annual passenger volume. If a Cruise Line does not
reach the minimum passenger guarantee in a given year, it will be required to make a shortfall payment
equal to the reduction in the amount of wharfage fees paid as a result of actual passenger numbers totaling
less than the minimum passenger guarantee.
Preferential Berth Allocation: For the duration of the Agreements, NYCEDC is agreeing to provide each
Cruise Line with preferential berthing status (a "Preferential Berth"), allowing for the use of berths at the
Cruise Terminals, as follows:
Manhattan Cruise Terminal:
o NCL - Pier 88 Berth 2, seven days a week, and Pier 88 Berth 1 either Saturday or
Sunday.
o CCL - Pier 90 Wednesday, Friday, Saturday; Pier 88 a second preference to NCL on
days that NCL has a first preference and Pier 90 a second preference to MSC on
Sunday, Monday and Thursday
o MSC - Pier 90 Sunday, Monday, Thursday
Brooklyn Cruise Terminal:
o CCL - All dates for its Cunard brand ship, the Queen Mary 2, indicated at the time of
signing the related Agreement
This will allow the Cruise Lines to plan for future deployments with the assurance that berths will be
available for their ships.
LDCMT-26-13512
Vessel Cancellation Fees: The Cruise Lines have agreed to a vessel cancellation fee, in the event
that certain vessel calls are cancelled after the cruise season calendar is published.
Incentives: For each year that a Cruise Line meets and/or exceeds its passenger guarantee, it will
receive a multi-tiered volume incentive reducing the wharfage portion of the facility usage fees.
Community Priority Fund: The Cruise Lines have agreed to pay a $1.00 per passenger fee to go
towards a community priority fund to be spent by NYCEDC. The funds will be programmed to
address community needs related to cruise activities as identified by the local community.
Emission Reductions: The Cruise Lines commit to continuously analyze the marine operations of
their cruise vessels and emissions associated with calls at the Cruise Terminals and to work with
NYCEDC to implement measures that reduce such emissions where commercially and
operationally feasible. If NYCEDC installs an electrical shore power connection on the piers of the
MCT, the Cruise Lines will make use of this connection when commercially and operationally
feasible. The BCT is currently equipped with a shore power connection. The Cruise Lines have
agreed to make use of that connection if operationally feasible. Failure to connect to the shore
power system when operationally feasible will result in loss of annual incentive fees. The Cruise
Lines are committing that all newly built cruise ships calling to New York City after 2028 will have
shore power connections. The Cruise Lines are committing to outfitting and or retrofitting all vessels
calling to New York City ahead of the Cruise Line International Association (CLIA) goal date of
2035.
Provisioning: Each Cruise Lines commits to develop a local vendor provisioning plan that analyzes
the spending for its purchases of goods and services associated with its cruise operations at the
Cruise Terminals from vendors, providers and labor located within the City and to work with
NYCEDC to maximize this spending with New York State-certified Minority and Women Owned
Business Enterprises. Cruise Lines that fail to provide NYCEDC with the local vendor plans shall no
longer be eligible to receive the annual incentive fees.
Educational Partnerships: The Cruise Lines are to establish partnerships with New York City
Educational institutions and participate in at least one annual career fair and one annual networking
event for each year of the term of their Agreements. Cruise Lines that fail to meet these
requirements will no longer be eligible to receive annual incentive fees.
Guarantee: Under the Agreements each of the Cruise Lines has guaranteed annual minimum passenger
volumes (embarking, disembarking, or in transit) at the Cruise Terminal for the term of its Agreement.
These guarantees total as follows for the periods indicated below:
CCL- A minimum of 900 thousand passengers over the initial three years, generating an
estimated $25 million in gross revenue.
NCL - A minimum of seven million passengers over the initial 10 years generating an estimated
$226 million in gross revenue.
MSC - A minimum of five million passengers, over the initial 15 years, generating an estimated $172
million in gross revenue.
LDCMT-26-13512
If, during a period when construction work is being performed at the Cruise Terminals, NYCEDC
cannot honor one or more berth requests for a Cruise Line's Preferential Berth, such Cruise Line's
annual minimum passenger guarantee for the calendar year in which such unfulfilled Preferential
Berth request occurs shall be reduced by an amount equal to the passenger capacity for such
vessel(s) for which NYCEDC cannot honor a Preferential Berth request, thereby reducing the threshold
for determining when a shortfall payment is due.
Proposed Resolution: To authorize the President and any empowered officer to enter into the
Agreements substantially as described herein
Relevant Staff: Sabina Lippman, Senior Vice President, Asset Management
Felix M. Ceballos, Vice President, Asset Management
Allison Dees, Vice President, Asset Management
Mary Clarke, Assistant Vice President, Asset Management
Sudhir Puthran, Assistant Vice President, Asset Management
Judy
Fensterman,
Assistant
General
Counsel, Legal
Mary Adams, Senior Counsel, Legal
NYCEDC Project Code: 1711
EXHIBIT C
LDCMT-26-13308
FINANCIAL REPORT PURSUANT TO SECTION 2800 OF THE
PUBLIC AUTHORITIES LAW
Board of Directors Meeting
September 28, 2023
WHEREAS, the Public Authorities Accountability Act of 2005, as amended (the
“PAAA”), includes NYCEDC in its definition of a local authority; and
WHEREAS, Section 2800 of the Public Authorities Law (a part of the PAAA) requires
a local authority to submit to various City officials and the New York State Authorities
Budget Office (“ABO”) audited financials with regard to the previous fiscal year; and
WHEREAS, ABO has also designated a form in which a financial report containing
information from the financials is to be submitted; and
WHEREAS, the Board of Directors of the local authority is to approve the audited
financials and the financial report that are submitted; and
WHEREAS, attached hereto are the audited financials and financial report that
NYCEDC proposes to submit with regard to the fiscal year ended June 30, 2023; and
WHEREAS, there are certain blank dates in the attached reports of the auditors,
which dates will be filled in after the Board approves the financial statements.
NOW, THEREFORE, RESOLVED that the Board approves (i) the attached financial
report and audited financial statements and related documents with regard to NYCEDC’s
fiscal year ended June 30, 2023, with the understanding that the blank dates in the reports
of the auditors will be filled in after the Board approves the audited financial statements, and
(ii) their submission, with the dates filled in, pursuant to Section 2800 of the Public
Authorities Law.
STAFF: Spencer Hobson, Executive Vice President and Treasurer
Amy Chan, Senior Vice President and Assistant Treasurer
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
F I N A N C I A L S T A T E M E N T S , R E Q U I R E D
S U P P L E M E N T A R Y I N F O R M A T I O N , A N D
S U P P L E M E N T A R Y I N F O R M A T I O N
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Years Ended June 30, 2023 and 2022
With Reports of Independent Auditors
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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New York City Economic Development Corporation
(A Component Unit of The City of New York)
Financial Statements, Required Supplementary Information,
and Supplementary Information
Years Ended June 30, 2023 and 2022
Contents
I. Financial Section
Report of Independent Auditors.......................................................................................................1
Financial Statements
Management’s Discussion and Analysis .........................................................................................5
Statements of Net Position .............................................................................................................16
Statements of Revenues, Expenses, and Changes in Net Position ................................................18
Statements of Cash Flow ...............................................................................................................19
Statements of Fiduciary Net Position ............................................................................................21
Statements of Changes in Fiduciary Net Position..........................................................................22
Notes to Financial Statements ........................................................................................................23
Required Supplementary Information
Schedule of Changes in Net OPEB Liability .................................................................................68
Schedule of OPEB Contributions ..................................................................................................71
Schedule of Investment Returns ....................................................................................................73
Supplementary Information
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ......................72
II. Government Auditing Standards Section
Report of Independent Auditors on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards ..............................................73
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I. Financial Section
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Report of Independent Auditors
The Management and the Board of Directors
New York City Economic Development Corporation
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the business-type activities and
fiduciary activities of the New York City Economic Development Corporation (the Corporation),
a component unit of The City of New York, as of and for the years ended June 30, 2023 and 2022,
and the related notes to the financial statements, which collectively comprise the Corporation’s
basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all
material respects, the respective financial position of the business-type activities and fiduciary
activities of the Corporation as of June 30, 2023 and 2022, and the respective changes in its
financial position, and, where applicable, cash flows thereof for the years then ended in accordance
with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audits in accordance with auditing standards generally accepted in the
United States of America (GAAS) and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States
(Government Auditing Standards). Our responsibilities under those standards are further described
in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are required to be independent of the Corporation, and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audits. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
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Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for
the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free of material misstatement, whether due to fraud
or error.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the
Corporation’s ability to continue as a going concern for 12 months beyond the financial statement
date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Corporation’s internal control. Accordingly, no such
opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
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• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the Corporation’s ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the schedule of changes in net OPEB liability, the schedule
of investment returns and the schedule of OPEB contributions, as listed in the table of contents, be
presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, which considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
Supplementary Information
Our audits were conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Corporation’s basic financial statements. The combining schedule of
revenues, expenses and changes in net position is presented for purposes of additional analysis and
is not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining schedule of
revenues, expenses, and changes in net position is fairly stated, in all material respects, in relation
to the basic financial statements as a whole.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
________, 2023 on our consideration of the Corporation’s internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the effectiveness of the Corporation’s internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Corporation’s internal control
over financial reporting and compliance.
________, 2023
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New York City Economic Development Corporation
(A Component Unit of The City of New York)
Management’s Discussion and Analysis
June 30, 2023 and 2022
This section of New York City Economic Development Corporation’s (NYCEDC or the
Corporation) annual financial report presents our discussion and analysis of NYCEDC’s financial
performance during the fiscal year ended June 30, 2023. Please read it in conjunction with the
financial statements and accompanying notes.
Fiscal Year 2023 Financial Highlights
Net position was $674.7 million at June 30, 2023:
• Cash, cash equivalents and investments increased $90.4 million (or 18%)
• Due from The City, net, increased $16.8 million (or 11%)
• Right to use lease assets, net and Capital assets, net, decreased $28.7 million (or 5%)
• Loans receivables and mortgage receivables, net of allowance for uncollectible amounts, decreased
$7.0 million (or 15%)
• Other assets increased $12.5 million (or 93%)
• Lease receivable decreased $75.9 million (or 3%)
• Account payable and accrued expenses decreased $56.8 million (or 27%)
• Unearned revenue decreased $18.2 million (or 12%)
• Retainage payable increased $13.2 million (or 17%)
Change in net position is an increase of $32.5 million for the fiscal year ended June 30, 2023:
• Grant revenues decreased $48.2 million (or 5%)
• Property rental, lease and interest revenue increased $22.1 million (or 9%)
• Other income decreased $52.9 million (or 59%)
• Ferry related expenses, net decreased $4.1 million (or 9%)
• Other general expenses decreased $5.7 million (or 24%)
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Management’s Discussion and Analysis (continued)
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Overview of the Basic Financial Statements
This annual financial report consists of four parts: management’s discussion and analysis
(this section), basic financial statements which include footnote disclosures, required
supplementary information, and supplementary information. NYCEDC is organized under the not-
for-profit corporation law of The State of New York. NYCEDC is also a discretely presented
component unit of The City of New York (The City). NYCEDC follows enterprise fund reporting;
accordingly, the financial statements are presented using the economic resources measurement
focus and the accrual basis of accounting. Enterprise fund statements offer short-term and long-
term financial information about the activities and operations of the Corporation.
While detailed sub-fund information is not presented, separate accounts are maintained for each
fund to control and manage transactions for specific purposes and to demonstrate that NYCEDC
is properly executing on its contractual obligations.
Financial Analysis of the Corporation
Condensed Statements of Net Position
In June 2017, GASB issued Statement No. 87, Leases (GASB 87). The objective of this Statement
is to better meet the information needs of financial statement users by improving accounting and
financial reporting for leases by governments. GASB 87 increases the usefulness of governments’
financial statements by requiring recognition of certain lease assets and liabilities for leases that
previously were classified as operating leases and recognized as inflows of resources or outflows
of resources based on the payment provisions of the contract.
As a result of adopting this pronouncement as of July 1, 2021, the Corporation recognized lease
receivables, deferred inflows of resources, lease liabilities and right to use lease assets on the
statement of net position based on the present value of future lease obligations and receivables.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Management’s Discussion and Analysis (continued)
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Financial Analysis of the Corporation (continued)
The following table summarizes NYCEDC’s financial position at June 30, 2023, 2022 and 2021
(dollars in thousands) and the percentage changes between June 30, 2023 and 2022:
2023 2022* 2021
% Change
2023–2022
Current assets
$ 843,037
$
767,188
$
526
,
794
10
%
Non
-
current assets
3,169,108
3,254,098
698
,
5
0
2
(3)
%
Total assets
4,012,145
4,021,286
1
,
225
,2
9
6
–
%
Deferred outflows of
resources
5,655
5,884
2
,
961
(4)
%
Current liabilities
358,226
311,342
279
,
1
3
1
15%
Non
-
current liabilities
648,893
660,076
394
,
098
(2)%
Total liabilities
1,007,119
971,418
6
7
3
,
229
4%
Deferred inflows of
resources
2,335,982
2,413,586
8
,56
4
(3)
%
Net position:
Restricted
109,012
118,753
8
7
,
64
7
(8)
%
Unrestricted
335,524
273,534
146
,
40
5
2
3
%
Net investment in capital
assets
230,163
249,879
31
2,
412
(
8
)%
Total net position
$ 674,699
$
642,166
$
546
,464
5
%
*GASB 87 was implemented as of July 1, 2021.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Management’s Discussion and Analysis (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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Financial Analysis of the Corporation (continued)
The Corporation’s total assets at June 30, 2023 decreased by $9.1 million, as compared to fiscal
year ended 2022. Cash, cash equivalents, and investments increased by $90.4 million mainly due
to income from investments of $10.0 million, the receipt of $45.0 million in receivables due from
City and Federal grants for prior year costs associated with NYC Ferry, and an increase in tenant
security deposits of $20.1 million. A net increase in Due from/to The City of $16.8 million is
primarily a result of City reimbursement grants due for project and program costs. Loan and
mortgage receivables decreased by $7.0 million mainly due to $6.0 million in repayments from a
hospital in connection with the hospital loan fund. At The City’s request, the fund was established
to address the needs of certain City hospitals caused by COVID-19 (see Note 7). Other assets
increased by $12.5 million primarily due to an $8.8 million change in cash and investment
positions related to the Corporation’s fuel hedging activities. In accordance with the requirements
of GASB 87, lease receivable decreased by $75.9 million primarily due to cash received from
tenants during the fiscal year.
The Corporation’s total liabilities increased by $35.7 million or 4%. Accounts payable and accrued
expenses increased by $56.8 million primarily due to accruals for several programs, including
$38.0 million for the Department of Education’s Early Childhood Education Stabilization Fund
and $12.6 million for the Con Edison funded Water Street Corridor Streetscape Improvement
project. Tenant security and deposits payable increased by $20.1 million due to deposits received
into escrow from Con Edison for the aforementioned Water Street Corridor Streetscape
Improvement project. Unearned revenue decreased by $18.2 million or 12% primarily due to
PILOMRT income recognized from a tenant within the 42
nd
Street Portfolio. In accordance with
GASB 87, lease liabilities decreased by $9.0 million as a result of payments made on long term
leases for office space and Pier 11/12.
The Corporation’s deferred inflows of resources decreased by $77.6 million or 3% as a result of
$90.2 million recognized on a straight-line basis as lease revenues offset with $24.1 million of net
additions related to the Corporation’s various lessor arrangements during the fiscal year.
The Corporation’s overall net position during fiscal year 2023 increased by $32.5 million, or 5%,
as a result of the fiscal year operating and non-operating activities. This increase consisted of a
$9.7 million decrease in restricted net position, $62.0 million increase in unrestricted net position,
offset by a $19.7 million reduction in net investment in capital assets.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Management’s Discussion and Analysis (continued)
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9
Financial Analysis of the Corporation (continued)
Prior Year
The Corporation’s total assets increased by $2.8 billion or 228% during fiscal year 2022. Cash,
cash equivalents, and investments increased by $72.7 million mainly due to income generated from
the partial sale of the leasehold interest at Kaufman Astoria Studios amounting to $26.3 million
and the transfer of development rights at the Brooklyn properties of 69 Adams Street and Atlantic
Yards totaling of $22.5 million. A net increase in Due from/to The City of $55.0 million is
primarily a result of a $45.0 million receivable generated from City and Federal grants to offset
the costs of NYC Ferry and $6.2 million of receivables for personnel services costs. The
reimbursements primarily relate to prior year costs incurred, during and in response to COVID-
19. Loan and mortgage receivables increased by $23.6 million mainly due to the establishment of
a hospital loan program with a bank lender that facilitated funding to address the needs of certain
City hospitals caused by COVID-19 and emerging variants. As a result of the adoption of GASB
87, $2.4 billion of leases receivable was recognized for the present value of future lease amounts
due to the Corporation from tenants and $243.1 million of right to use lease assets were recognized
for the present value of future lease obligations owed for office space, Pier 11/12, vehicles and
equipment.
The Corporation’s total liabilities increased by $298.2 million or 44%. As a result of the
implementation of GASB 87, lease liabilities increased by $283.1 million to offset the right to use
assets recognized. Additionally, $24.2 million of notes payable, including interest, were executed
and due to a bank lender relating to the hospital loan program.
The Corporation’s deferred inflows of resources increased by $2.4 billion or 28,083% as a result
of the adoption of GASB 87 which required the recognition of deferred inflows of resources to
offset future leases receivables.
The Corporation’s overall net position during fiscal year 2022 increased by $95.7 million, or 18%,
as a result of the fiscal year operating and non-operating activities. This increase consisted of a
$31.1 million increase in restricted net position, $127.1 million increase in unrestricted net
position, offset by a $62.5 million reduction in net investment in capital assets.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Management’s Discussion and Analysis (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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10
Financial Analysis of the Corporation (continued)
Operating Activities
NYCEDC is The City’s primary engine for economic development and is charged with leveraging
The City’s assets to drive growth, create jobs, and improve the overall quality of life within The
City. Through its various divisions, NYCEDC provides a variety of services to eligible businesses
that want to become more competitive, more productive and more profitable. In order to provide
these services, NYCEDC primarily generates revenues from property rentals and real estate sales.
The following table summarizes NYCEDC’s change in net position for the fiscal years ended
June 30, 2023, 2022 and 2021 (dollars in thousands) and the percentage changes between fiscal
years 2023 and 2022:
2023 2022* 2021
% Change
2023–2022
Operating revenues:
Grants
$ 838,705
$
886,928
$
652,456
(
5
)%
Real estate sales, net and property rentals
and lease revenues
203,943
180,831
202
,292
13
%
Fees and other income
52,168
99,625
67
,550
(
48
)%
Total operating revenues
1,094,816
1,167,384
922,298
(
6
)%
Operating expenses:
Project and program costs
840,711
835,356
662,592
1
%
Property rentals and related operating
expenses
91,467
88,663
86
,397
3
%
Ferry related expenses, net
41,190
45,292
32,518
(9)
%
Personnel
services
73,140
67,908
70
,195
8
%
Contract and other expenses to
The City
28,124
26,923
28
,767
4
%
Other expenses
51,530
58,569
67
,750
(
12
)%
Total operating expenses
1,126,162
1,122,711
948,219
–
%
Operating
(loss
)
income
(31,346)
44,673
(25,921)
>
(
100
)%
Total non
-
operating (loss) income
63,879
51,029
77
25
%
Change in net position before capital
contributions
32,533
95,702
(25
,844)
(
6
6)%
Capital contributions
–
–
8,061
–
%
Change in net position
32,533
95,702
(17,
783)
(
6
6)%
Total
net position, beginning of fiscal year
642,166
546,464
564
,
247
18%
Total net position, end of fiscal year
$ 674,699
$
642,166
$
546
.464
5
%
*GASB 87 was implemented as of July 1, 2021.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Management’s Discussion and Analysis (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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11
Financial Analysis of the Corporation (continued)
During fiscal year ended 2023, operating revenues decreased by $72.6 million, or 6%. The
decrease in operating revenues is largely due to the decrease in reimbursable grants of
$48.2 million and other income of $52.9 million, offset by an increase in property rental, lease and
interest revenue of $23.1 million. The decrease in reimbursable grants is primarily the result of
$45 million of non-recurring funding for NYC Ferry Operations from City tax levy ($15 million)
and federal relief funds ($30 million) allocated to the Corporation during fiscal year 2022. Other
income decreased as a result of several fiscal year 2022 non-recurring transactions at 69 Adams
Street, Atlantic Yards in Brooklyn and Kaufman Astoria Studios in Queens which generated
combined income of $49.3 million. Increases in property rental, lease and interest revenue was
driven by continued recovery of rental and cruise activity back to pre-pandemic levels.
Operating expenses during the fiscal year ended 2023 increased by $3.4 million, remaining flat as
compared to prior year. Reimbursable project costs decreased $10.1 million mainly due to the
close out of the COVID-19 vaccine incentives program which incurred costs of $96.2 million in
fiscal year 2022, offset with 2023 project costs incurred for the Early Childhood Education
Stabilization fund of $48.4 million, Water Street Corridor Streetscape project of $17.2 million and
the NYC Summer Concert Series of $5.6 million. Program costs increased by $15.4 million due
to expenses incurred on 29 new capital projects. The decrease of $4.1 million in ferry related
expenses is primarily due to $6.0 million of rebates recognized from NYC Ferry’s participation in
The State’s petroleum business and sales tax reimbursement programs, which were utilized to
offset ferry fuel costs. Personnel services increased by $5.2 million due to backfilling of vacant
positions. Other expenses decreased by $7.0 million primarily due to pandemic-driven tenant bad
debt expenses recognized in fiscal year 2022, not continuing in fiscal year 2023.
Accordingly, operating income decreased by $76.0 million as compared to fiscal year 2022 with
the Corporation recognizing a net operating loss of $31.3 million during fiscal year 2023.
Non-Operating Activities
Total non-operating revenues for fiscal years ended 2023 and 2022 totaled $63.9 million and
$51.0 million, respectively. The fiscal year 2023 total was primarily made up of $53.9 million of
interest revenues earned on leases recognized in accordance with the requirements of GASB 87.
Prior to the adoption of this standard, all property rental and lease revenues recognized were
classified as operating income. Additionally, $10.0 million of investment income was recognized
during fiscal year 2023, due to rising interest rates and market recovery.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Management’s Discussion and Analysis (continued)
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Financial Analysis of the Corporation (continued)
Net Position
The Corporation’s net operating loss of $31.3 million and non-operating revenue of $63.9 million,
resulted in an increase in net position of $32.5 million during fiscal year 2023. This constitutes a
decrease of $63.2 million or 66% as compared with the change in fiscal year 2022.
Prior Year
During fiscal year 2022, operating revenues increased by $245.1 million, or 27%. The increase in
operating revenues is largely due to the increase in reimbursable grants of $234.5 million, real
estate sales, property rental, lease and interest revenue of $33.4 million and other income of
$35.0 million. The increase in reimbursable grants is primarily due to the following programs:
$99.4 million for the COVID-19 vaccine incentive program, $56.0 million for NYC Green
Infrastructure, $50.4 million for Manhattan Greenway, $39.3 million for NYC Ferry capital
infrastructure, and $20.7 million for Wildlife Conservation. Additionally, $15.0 million of City tax
levy funding and $30.0 million in federal relief funds were allocated to the Corporation during the
fiscal year for NYC Ferry operations. These revenue increases were offset by a decrease of
$34.2 million in other COVID-19 response expenses and a decrease of $14.6 million relating to
the Queens Small Business Grant Program. Property rental, lease and interest revenue increased
by $38.4 million mainly due to the following: $9.5 million more in permit revenues received
mainly from the Coney Island Amusement operator and from the Bathgate Industrial Campus,
$8.0 million of pass-through PILOT income received for a site in the 42
nd
Street Development
Project district, $5.1 million received as a site acquisition payment for 11 Metro Tech in downtown
Brooklyn and $4.1 million earned in wharfage and dockage revenues from the cruise terminals.
The increase in other income of $35.0 million is driven by the transfer of development rights at 69
Adams Street and Atlantic Yards in Brooklyn which generated $17.8 million and $5.3 million,
respectively, and the partial sale of a leasehold interest at Kaufman Astoria Studios of
$26.2 million.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Management’s Discussion and Analysis (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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13
Financial Analysis of the Corporation (continued)
Operating expenses during fiscal year 2022 increased by $174.5 million, or 18%. The increase in
reimbursable project costs of $51.8 million and increase in program costs of $121.0 million were
primarily due to the costs incurred for the aforementioned projects for vaccine incentives, green
infrastructure, and Manhattan Greenway. The increase of $12.8 million in ferry related expenses
is due to the result of ferry services continuing to return to pre-pandemic levels. Other expenses
decreased by $9.2 million primarily due to pandemic-driven tenant bad debt expense recognized
in fiscal year 2021, not continuing in fiscal year 2022.
Non-Operating Activities
Total non-operating revenues for fiscal year 2022 totaled $51.0 million, primarily made up of
interest revenues earned on leases recognized in accordance with the requirements of GASB 87.
Prior to the adoption of this standard, all property rental and lease revenues recognized were
classified as operating income.
Net Position
The Corporation’s net operating income of $44.7 million and non-operating revenue of
$51.0 million, resulted in an increase in net position of $95.7 million during fiscal year 2022. This
constitutes an increase of $121.5 million, or 470%, as compared with the change in fiscal year
2021.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Management’s Discussion and Analysis (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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14
Financial Analysis of the Corporation (continued)
Capital Assets and Right to Use Lease
The following table summarizes NYCEDC’s capital and right to use lease assets for the fiscal
years ended June 30, 2023 and 2022, (dollars in thousands) and the percentage change between
June 30, 2023 and 2022:
Capital assets 2023 2022
% Change
2023–2022
Leasehold improvements
$ 92,100
$
92,100
–
%
Equipment and computer software
21,514
21,443
–
%
Vessels
239,045
239,045
–
%
Work
-
in progress
–
other
376
376
–
%
353,035
352,964
–
%
Less accumulated depreciation
and
amortization
(79,857)
(63,135)
26
%
Net capital assets
$ 273,178
$
289,829
(6)
%
Right to use lease assets
Vehicles and equipment
$ 863
$
564
53%
Office space
181,737
181,737
–
%
Pier 11/12
73,166
73,166
–
%
255,766
255,467
–
%
Less accumulated depreciation
and
amortization
(24,689)
(12,331)
100
%
Net right to use lease assets
$ 231,077
$
243,136
(5)
%
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Management’s Discussion and Analysis (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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15
Financial Analysis of the Corporation (continued)
Additional information about NYCEDC’s capital and right to use lease assets are presented in
Note 9 to the financial statements.
Contacting NYCEDC’s Financial Management
This financial report is designed to provide NYCEDC’s customers, clients and the public with a
general overview of the Corporation’s finances and to demonstrate NYCEDC’s accountability for
the resources at its disposal. If you have any questions about this report or need additional financial
information, contact the Chief Financial Officer of New York City Economic Development
Corporation, One Liberty Plaza, New York, NY 10006, or visit NYCEDC’s website at:
http://edc.nyc/contact-us.
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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New York City Economic Development Corporation
(A Component Unit of The City of New York)
Statements of Net Position
(In Thousands)
June 30
2023 2022
Assets
Current assets:
Cash and cash equivalents
–
current
$ 58,959
$
54,780
Restricted cash and cash equivalents
–
current
127,627
132,705
Unrestricted investments
79,772
40,096
Restricted investments
44,535
26,400
Current portion of loans and mortgage notes receivable
20,930
4,409
Due from The City, including $235,836 and $229,189 under contracts
with
The City
, respectively
306,584
312,504
Tenant receivables, net of allowance for uncollectible amounts of
$
40,75
5
and
$49,934
, respectively
16,075
11,352
Current portion of leases receivable
152,837
148,795
Prepaid expenses and other current assets
4,218
2,702
Other receivables
31,500
33,445
Total current assets
843,037
767,188
Non
-
current assets:
Restricted cash and cash equivalents
200,900
153,273
Unrestricted
investments
47,699
47,989
Restricted investments
22,617
36,509
Loans and mortgage notes receivable, less current portion (less
allowance for loan losses of
$
6
,
996
and
$8,879)
, respectively
18,829
42,317
Leases receivable, less current portion
2,213,019
2,292,977
Right to use lease assets, net
231,077
243,136
Capital assets, net
273,178
289,829
OPEB asset
3,409
2,188
Land held for development, at cost
132,387
132,387
Other assets
25,993
13,493
Total non
-
current assets
3,169,108
3,254,098
Total assets
4,012,145
4,021,286
Deferred outflows of resources
Deferred outflows of resources
–
OPEB
4,862
5,884
Accumulated decrease in fair value of hedging derivatives
793
–
Total deferred outflows of resources
5,655
5,884
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Statements of Net Position (continued)
(In Thousands)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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17
June 30
2023 2022
Liabilities
Current liabilities:
Accounts payable and accrued expenses, including $153,267 and
$134,153
, respectively
,
under contracts with
The City
$ 267,509
$
210,725
Current portion of lease liabilities
13,701
13,548
Deposits received on pending sales of real estate
5,956
5,469
Due to
The City
: real estate obligations and other
18,018
40,787
Unearned revenue
48,282
36,660
Other liabilities
4,760
4,153
Total current liabilities
358,226
311,342
Non
-
current liabilities:
Tenant security and escrow deposits payable
67,808
47,659
Due to
The City
: real estate obligations
125,021
125,021
Lease liabilities, less current portion
260,391
269,538
Unearned revenue, including unearned grant revenue of $4,864 and
$4,960
, respectively,
under contracts with
The City
84,731
114,546
Retainage payable
90,755
77,486
Other liabilities
20,187
25,826
Total non
-
current liabilities
648,893
660,076
Total liabilities
1,007,119
971,418
Deferred inflows of resources
Deferred inflows of resources
–
leases
2,328,082
2,394,266
Deferred inflows of resources
–
OPEB
7,900
8,840
Accumulated increase in fair value of hedging derivatives
–
10,480
Total deferred inflows of resources
2,335,982
2,413,586
Net position
Restricted by law or under various agreements
109,012
118,753
Unrestricted
335,524
273,534
Net investment in capital assets
230,163
249,879
Total net position
$ 674,699
$
642,166
See accompanying notes.
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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18
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Statements of Revenues, Expenses, and Changes in Net Position
(In Thousands)
Year Ended June 30
2023 2022
Operating revenues:
Grants
$ 838,705
$
886,928
Property rentals and lease revenue
203,943
180,831
Fee income
15,734
10,324
Other income
36,434
89,301
Total operating revenues
1,094,816
1,167,384
Operating expenses:
Project costs
154,774
164,825
Program costs
685,937
670,531
Property rentals and related operating expenses
91,467
88,663
Ferry related expenses, net
41,190
45,292
Personnel services
73,140
67,908
Contract and other expenses to
The City
28,124
26,923
Interest expenses
–
leases
4,129
4,232
Depreciation and amortization
29,042
30,301
Other general expenses
18,359
24,036
Total operating expenses
1,126,162
1,122,711
Operating
(
loss
)
income
(31,346)
44,673
Non
-
operating revenues (losses):
Income (l
oss
)
from investments
9,996
(1,855)
Interest revenue
–
leases
53,883
54,858
Other non
-
operating expense
s
–
(1,974)
Total non
-
operating revenues, net
63,879
51,029
Change in net position
32,533
95,702
Net position, beginning of fiscal year
642,166
546,464
Net position, end of fiscal year
$ 674,699
$
642,166
See accompanying notes.
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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New York City Economic Development Corporation
(A Component Unit of The City of New York)
Statements of Cash Flow
(In Thousands)
Year Ended June 30
2023 2022
Cash flows from operating activities
Property rentals and related leasing revenue
$ 246,597
$
249,713
Grants from
The City
847,321
832,200
Fee income
15,709
10,337
Other income
28,817
86,496
Project costs
(117,007)
(149,999)
Program costs
(667,476)
(676,127)
Property rentals and related operating expenses
(91,226)
(90,678)
Ferry expenses
(47,614)
(38,388)
Personnel services
(72,422)
(68,516)
Office rent
(11,802)
(11,708)
Contract and other
payments
to
The City
(52,488)
(26,923)
Other general and administrative expenses
(16,588)
(29,653)
Repayments of loans and mortgage receivable
6,967
(24,452)
Tenant security and escrow deposits
20,148
5,165
Other
(7,123)
7,261
Net cash provided by operating activities
81,813
74,728
Cash flows from capital and related financing activities
Purchase of capital assets
(71)
(131)
Net cash used in capital and related financing activities
(71)
(131)
Cash flows from investing activities
Sale of investments
90,877
129,101
Purchase of investments
(125,891)
(155,354)
Net cash used in investing activities
(35,014)
(26,253)
Net increase in cash and cash equivalents
46,728
48,344
Cash and cash
equivalents, beginning of fiscal year
340,758
292,414
Cash and cash equivalents, end of fiscal year
$ 387,486
$
340,758
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Statements of Cash Flow (continued)
(In Thousands)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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20
Year Ended June 30
2023 2022
Reconciliation of operating (loss) income to net cash provided
by operating activities
Operating
(loss)
income
$ (31,346)
$
44,673
Adjustments to reconcile operating (loss) income to net cash
provided by operating activities:
Depreciation and amortization
29,042
30,301
Provision for bad debts
9,246
16,523
Interest revenue
–
leases
53,883
54,858
Other
506
(2,502)
Changes in operating assets, liabilities and deferred
inflow/outflow of resources:
Due to/from
The City
(16,849)
(54,953)
Other non
-
current assets
(12,501)
(4,105)
Tenant receivables
(13,819)
(19,763)
Prepaid expenses and other receivables
(10,070)
(8,914)
Loans and mortgage notes receivable
6,837
(23,579)
Tenant security and escrow deposits payable
20,148
5,165
Accounts payable and
accrued expenses
57,842
(8,646)
Deposits received on pending sales of real estate
487
(3,281)
Net OPEB liability
1,221
2,869
Unearned grant revenue
(19,354)
10,632
Deferred inflows of resources
82
2,137
Retainage payable
13,269
7,904
Other
current liabilities
(76)
1,359
Other non
-
current liabilities
(6,735)
24,050
Net cash provided by operating activities
$ 81,813
$
74,728
Supplemental disclosures of noncash activities
Unrealized gain on investments
$ 1,381
$
(2,357)
See accompanying notes.
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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New York City Economic Development Corporation
(A Component Unit of The City of New York)
Statements of Fiduciary Net Position
(In Thousands)
OPEB Trust
June 30
2023 2022
Assets
Cash and cash equivalents
$ 136
$
76
Investments:
Mutual funds
19,721
20,119
Due from NYCEDC
32
–
Accrued
interest receivable
1
–
Total assets
19,890
20,195
Liabilities
Accrued expenses
51
70
Due to NYCEDC
–
184
Total liabilities
51
254
Net position
–
restricted for OPEB
$ 19,839
$
19,941
See accompanying notes.
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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New York City Economic Development Corporation
(A Component Unit of The City of New York)
Statements of Changes in Fiduciary Net Position
(In Thousands)
OPEB Trust
Year Ended June 30
2023 2022
Additions
Interest and dividends
$ 644
$
686
Total additions
644
686
Deductions
Benefit payments
375
408
Administrative expenses
96
116
Net decrease in fair value of investments
275
4,156
Total deductions
746
4,680
Net decrease in fiduciary net position
(102)
(3,994)
Net position – restricted for OPEB
Beginning of fiscal year
19,941
23,935
End of fiscal year
$ 19,839
$
19,941
See accompanying notes.
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements
June 30, 2023 and 2022
1. Background and Organization
The accompanying financial statements include the assets, liabilities, net position and the financial
activities of the New York City Economic Development Corporation (NYCEDC or the
Corporation) and its blended component units (Note 16).
NYCEDC is a not-for-profit corporation organized under the New York State Not-for-Profit
Corporation Law (the NPCL) that generates income that is exempt from federal taxation under
section 115 of the Internal Revenue Code (IRC). NYCEDC’s primary activities consist of
rendering a variety of services to administer certain economic development programs on behalf of
The City of New York (The City) relating to the attraction, retention and expansion of commerce
and industry in The City. These services and programs include encouragement of construction,
acquisition, rehabilitation and improvement of commercial and industrial enterprises within The
City, the provision of financial assistance to qualifying business enterprises as a means of helping
to create and retain employment therein, managing, developing and promoting The City’s
waterfront, markets, aviation, freight and intermodal transportation, including the NYC Ferry
system, and workforce development and recruitment programs. These services are generally
provided under two annual contracts with The City: the amended and restated contract Master
Contract and the amended and restated Maritime Contract. The services provided under these
contracts and other related agreements with The City are herein referred to as the Contract
Services.
In order to provide these services, NYCEDC primarily generates revenues from property rentals
and real estate sales. To present the financial position and the changes in financial position of
NYCEDC’s rental portfolio in a manner consistent with the limitations and restrictions placed
upon the use of resources and NYCEDC’s contractual agreements with The City and other third
parties, NYCEDC classifies its asset management operations into the following five portfolios:
Commercial Leases Portfolio: NYCEDC manages property leases with various commercial
and industrial tenants. For ground leases, these agreements include restrictions on the use of
the land to the construction or development of commercial, manufacturing, industrial or
residential facilities. The City-owned properties are leased to NYCEDC, which, in turn
subleases the properties to commercial and industrial tenants. The leases generally provide for
base rent payments plus provisions for additional rent.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
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1. Background and Organization
Brooklyn Army Terminal Portfolio: The Brooklyn Army Terminal (BAT) is an industrial
property owned by The City that is leased to NYCEDC. NYCEDC, in turn, subleases the
properties to commercial and industrial tenants. Under the terms of the BAT lease, a reserve
account of $500,000 was established from net BAT revenues for property operating and capital
expenses.
Maritime Portfolio: This portfolio was established to account for NYCEDC’s management
and maintenance of wharf, waterfront, public market, public aviation, and intermodal
transportation properties and the NYC Ferry system on The City’s behalf pursuant to the
Maritime Contract.
Other Properties Portfolio: This portfolio was established to account for the activities of
certain City-owned properties and other assets for which NYCEDC assumed management
responsibilities. Pursuant to various agreements between NYCEDC and The City, the net
revenue from three of the properties is retained for property operating and capital expenses or
for expenses of projects in the area.
42nd Street Development Project Portfolio: This portfolio was established as a joint effort
between The City and New York State (The State) to redevelop the 42nd Street district between
7th and 8th Avenues into a vibrant office and cultural center. By October 2012, ownership of
all the properties was transferred from The State to The City. NYCEDC also assumed
management and administrative responsibilities for all leases in connection with the 42nd
Street Development Project as governed by the Master Contract with The City.
Beginning in fiscal year 2017, to partially offset the costs to NYCEDC for establishing and
operating the NYC Ferry service (Note 12), the Corporation has not been required to remit
rental revenues from the Project to The City. NYCEDC, however, is required to pass through
to The City, all payments in lieu of taxes and real estate taxes collected from the Project.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
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2. Summary of Significant Accounting Policies
Basis of Accounting and Presentation
NYCEDC follows enterprise fund reporting; accordingly, the accompanying financial statements
are presented using the economic resources measurement focus and the accrual basis of
accounting. In its accounting and financial reporting, the Corporation follows the pronouncements
of the Governmental Accounting Standards Board (GASB).
In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships
and Availability Payment Arrangements (GASB 94). The primary objective of this Statement is to
improve financial reporting by addressing issues related to public-private and public-public
partnership arrangements (PPPs). This Statement also provides guidance for accounting and
financial reporting for availability payment arrangements (APAs). Provisions of this Statement are
effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. The
adoption of this standard did not have a significant impact on the Corporation’s financial
statements.
In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology
Arrangements (GASB 96). The primary objective of this Statement is to provide guidance on the
accounting and financial reporting for subscription-based information technology arrangements
for government end users. The requirements of this Statement are effective for fiscal years
beginning after June 15, 2022, and all reporting periods thereafter. The adoption of this standard
did not have a significant impact on the Corporation’s financial statements.
In April 2022, GASB issued Statement No. 99, Omnibus 2022 (GASB 99). The objectives of this
statement are to enhance comparability in accounting and financial reporting and to improve the
consistency of authoritative literature by addressing (1) practice issues that have been identified
during implementation and application of certain GASB Statements and (2) accounting and
financial reporting for financial guarantees. Certain paragraphs of this statement were effective
immediately and did not have a significant impact on the Corporation’s financial statements. The
remaining requirements of this statement are effective for fiscal years beginning after June 15,
2022 and beyond. The adoption of this standard did not have a significant impact on the
Corporation’s financial statements.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
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2. Summary of Significant Accounting Policies (continued)
Upcoming Accounting Pronouncements
In June of 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this
Statement is to better meet the information needs of financial statement users by updating the
recognition and measurement guidance for compensated absences. That objective is achieved by
aligning the recognition and measurement guidance under a unified model and by amending
certain previously required disclosures. The requirements of this Statement are effective for fiscal
years beginning after December 15, 2023, and all reporting periods thereafter. The Corporation is
evaluating the impact this standard will have on its financial statements.
Impact of GASB Statement No. 87, Leases (GASB 87)
In June 2017, GASB 87 was issued. The objective of this Statement is to better meet the
information needs of financial statement users by improving accounting and financial reporting
for leases by governments. GASB 87 increases the usefulness of governments’ financial statements
by requiring recognition of certain lease assets and liabilities for leases that previously were
classified as operating leases and recognized as inflows of resources or outflows of resources based
on the payment provisions of the contract.
As discussed in Note 1, while the Corporation classifies its asset management operations into five
portfolios, the Corporation evaluated whether each arrangement within each portfolio would be
considered a lease within the scope of GASB 87. NYCEDC is contracted by The City to manage
and maintain properties on behalf of The City, including certain City-owned properties that are
leased to NYCEDC and City-owned properties that are leased to private parties. In the case of
properties leased to the Corporation, NYCEDC, in turn, subleases the properties to commercial
and industrial tenants.
In accordance with GASB 87, as the Corporation (1) acts as either the property manager/lease
administrator for The City or (2) the nominal rents remitted to The City are deemed non-exchange
for The City-owned property, there is no lessor-lessee relationship between The City and
NYCEDC recognized in the accompanying financial statements. However, for those City-owned
properties that are leased to NYCEDC, NYCEDC’s subleases to commercial and industrial tenants
are considered leases under GASB 87 and these lessor relationships are recognized as leases
receivable (Note 11).
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
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2. Summary of Significant Accounting Policies (continued)
As a result of adopting this pronouncement as of July 1, 2021, the Corporation recognized lease
receivables and deferred inflows of resources related to its lessor arrangements, as described in
Note 11, as well as lease liabilities and right to use lease assets related to its various lessee
arrangements as discussed in Note 13. The lease receivables and lease liabilities as recorded in the
statement of net position were based on the present value of future payments. Within the statement
of revenues, expenses and changes in net position, the right to use lease assets and deferred inflow
of resources were recognized on a straight-line basis as amortization expense and lease revenues,
respectively, over the life of the leases. The interest portion of cash payments received towards
lease receivables and paid on lease liabilities are recognized as interest revenue and expense,
respectively, based on rates implicit in the leases or the incremental borrowing rate.
Revenue and Expense Classification
NYCEDC distinguishes operating revenues and expenses from non-operating items in the
preparation of its financial statements. Operating revenues and expenses generally result from
providing the Contract Services to The City in connection with NYCEDC’s principal ongoing
operations. The principal operating revenues are grants from and through The City, rentals of City-
owned property, and sales of property (see Real Estate Sales under this Note). NYCEDC’s
operating expenses include project and program costs, property maintenance charges, and general
administrative expenses. All revenues and expenses not meeting this definition are reported as
non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is NYCEDC’s policy to
use restricted resources first and then unrestricted resources as needed.
Grants
NYCEDC administers certain reimbursement and other grant funds from and through The City
under its contracts with The City.
A reimbursement grant is a grant awarded for a specifically defined project and is generally
administered such that NYCEDC is reimbursed for any qualified expenditures associated with
such projects.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
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2. Summary of Significant Accounting Policies (continued)
NYCEDC records reimbursement grants from and through The City as revenue when the related
program costs are incurred. Differences between the program costs incurred on specific projects
and the related receipts are reflected as due from The City or as a part of unearned revenue in the
accompanying statements of net position.
Other grants are recorded as revenue when earned.
Property Rental and Lease Revenues
Property rental and lease revenues include amounts earned for additional performance or usage-
based rent, other variable rents, pass-through rents and short-term lease revenue. It also includes
amortization of the deferred inflows of resources recognized, in accordance with GASB 87, on a
straight-line basis over the remaining term of the leases.
Real Estate Sales
Proceeds from sales of City-owned properties, other than proceeds in the form of a promissory
note from the purchaser in favor of NYCEDC, are recognized as income at the time of closing of
the sale. For property sales in which NYCEDC accepts a long-term promissory note from a
purchaser in lieu of cash, in addition to the note receivable, the corresponding unearned revenue
is recorded at the time of closing. Due to collectability risks associated with these promissory
notes, such unearned revenue is amortized into income ratably as payments are made.
Deposits received from prospective purchasers prior to closing are included in the accompanying
statements of net position as deposits received on pending sales of real estate.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
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2. Summary of Significant Accounting Policies (continued)
Deferred Outflows and Inflow of Resources
The Corporation reports Deferred Outflows of Resources in the Statement of Net Position in a
separate section following Assets and Deferred Inflows of Resources in a separate section
following Liabilities. Changes in fair value in connection with fuel hedging for NYC Ferry are
recorded as either a deferred outflow (loss) or as a deferred inflow (gain) of resources. The net
differences between projected and actual earnings on OPEB plan investments, changes in
assumptions for OPEB, and differences in expected and actual experience for OPEB are recorded
as either a deferred outflow or as a deferred inflow of resources. The offset to the present value of
future tenant lease payments (leases receivable) are recognized as deferred inflow of resources and
is amortized on a straight-line basis over the remaining term of the leases.
Retainage Payable
Retainage payable is treated as non-current due to the long-term nature of the related contracts.
Loans and Mortgage Notes Receivable
Loans to finance the acquisition of land and buildings are generally repayable over a 15 to 25 year
period. Generally, all such loans for acquisition are secured by second mortgages or other security
interests and carry below market interest rates. NYCEDC has also provided loans to City
businesses to advance certain economic development objectives.
NYCEDC provides an allowance for loan losses based on an analysis of a number of factors,
including the value of the related collateral. Based on established procedures, NYCEDC writes off
the balances of those loans determined by management to be uncollectible.
Cash and Cash Equivalents
Cash and cash equivalents include cash in banks and on hand, money market funds, money market
deposit accounts, applicable certificates of deposit, and highly liquid debt instruments with original
maturities of three months or less. Cash equivalents are stated at fair value, other than certificates
of deposit, which are valued at cost.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
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2. Summary of Significant Accounting Policies (continued)
Investments
Investments held by NYCEDC are recorded at fair value.
Restricted Cash and Investments
Restricted cash and investments include amounts related to operations or programs administered
on behalf of The City, and, accordingly, such amounts are not available for use by NYCEDC for
general corporate purposes.
Capital Assets
Assets purchased for internal use by NYCEDC in excess of $10,000 are capitalized and consist
primarily of vessels operating under the NYC Ferry system, leasehold improvements and
equipment. Vessels are depreciated over a useful life of 25 years. Leasehold improvements are
depreciated using the straight-line method over the shorter of the life of the lease or the estimated
useful life assigned. Accordingly, leasehold improvements have useful lives from 7 to 20 years.
The Corporation also uses the straight-line method for depreciating or amortizing furniture and
equipment over the estimated useful life assigned. The useful life of furniture and equipment varies
from three to five years.
Disbursements made by NYCEDC on behalf of The City for, among other things, capital projects,
tenant build-out reimbursements, and leasing commissions in connection with rental operations
are reflected as expenses in the year they are incurred.
Right to Use Lease Assets
Right to use lease assets are recorded to offset lease liabilities and adjusted as necessary for
payments made to the lessor at or before the time of commencement of the lease and minus any
lease incentives from the lessor. The Corporation uses the straight-line method for amortizing these
assets over the remaining terms of the leases.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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2. Summary of Significant Accounting Policies (continued)
Tax Status
The currently reported income of NYCEDC qualifies for exclusion from gross income for federal
income tax purposes under IRC Section 115.
Net Position
In order to present the financial condition and operating results of NYCEDC in a manner consistent
with the limitations and restrictions placed upon the use of resources, NYCEDC classifies its net
position into three categories: restricted net position, unrestricted net position and net investment
in capital assets. The restricted net position includes net position that has been restricted in use in
accordance with the terms of an award or agreement (other than the net position generally available
for City program activities under the Master Contract and the Maritime Contract) or by law.
Net investment in capital assets includes capital assets net of accumulated depreciation used in
NYCEDC’s operations. The unrestricted net position includes all net position not included above.
The Master Contract and the Maritime Contract limit the use of all unrestricted net position to City
program activities except for unrestricted net position resulting from income self-generated by
NYCEDC.
Fiduciary Fund Statements
The statement of fiduciary net position and the statement of changes in fiduciary net position
provide information on the Corporation’s fiduciary activities in its Other Post-Employment
Benefits Trust Fund, which reports resources that are required to be held in trust for members and
beneficiaries of the Corporation’s OPEB plan.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
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3. Contracts With The City of New York
NYCEDC Master Contract
The City and NYCEDC have entered into the Master Contract, under which the Corporation has
been retained to perform various services primarily related to the retention and expansion of
industrial and commercial development within The City, including, among other activities:
(1) facilitating commercial and industrial development projects; (2) stabilizing and improving
industrial areas; (3) administering public loan, grant, and subsidy programs; (4) encouraging
development of intrastate, interstate and international commerce; (5) managing and maintaining
certain City owned -properties; and (6) workforce development and recruitment programs.
In partial consideration of the services rendered by NYCEDC pursuant to the Master Contract, the
Corporation may retain (1) net revenues from the sale or lease of City-owned properties and
(2) certain interest and other related income received by NYCEDC for financing programs
administered on behalf of The City, up to a cap. Income self-generated by NYCEDC, including
interest on all cash accounts related to unrestricted operations and certain fees for services, may
be retained by NYCEDC under the Master Contract without regard to the contract cap.
Pursuant to section 11.05 of the Master Contract, at any time upon written request of the Mayor of
The City or the Mayor’s designee, NYCEDC must remit to The City assets having a fair market
value up to the amount, if any, by which the Corporation’s unrestricted net position exceeds
$7 million. At the direction of The City, NYCEDC remitted $2.6 million and $3.2 million from its
unrestricted net position in fiscal years ended 2023 and 2022, respectively, which is accounted for
under contract and other expenses to The City in the statements of revenues, expenses, and changes
in net position.
The term of the Master Contract is one year commencing on July 1 and may be extended by The
City for up to one year. The City may terminate this contract at its sole discretion upon 90 days’
written notice. Upon termination of this contract, NYCEDC must remit to The City all program
funds or other assets subject to certain prescribed limitations.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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3. Contracts With The City of New York (continued)
Maritime Contract
The City and NYCEDC have entered into the Maritime Contract under which the Corporation has
been retained to perform various services primarily related to the retention and expansion of
waterfront, intermodal transportation, market, freight and aviation development and commerce.
The services provided under this contract include (1) retaining maritime business and attracting
maritime business to The City; (2) managing, developing, maintaining, and promoting The City’s
waterfront, markets, aviation, freight and intermodal transportation, including the NYC Ferry
system; and (3) administering leases, permits, licenses, and other occupancy agreements pertaining
to such related properties.
In the performance of its services under the Maritime Contract, NYCEDC collects monies,
including, but not limited to, rents and other revenues from tenants of certain City-owned
properties managed by NYCEDC in connection with its maritime program. In consideration of the
services rendered by the Corporation pursuant to the Maritime Contract, The City has agreed to
pay NYCEDC for all costs incurred in the furtherance of The City’s objectives under this contract,
to the extent such costs have been provided for in The City-approved budget (the Budget) as called
for by the Maritime Contract. Any reimbursable expenses, as defined in the Maritime Contract,
may be retained by NYCEDC out of the net revenues generated on The City’s behalf, to the extent
such expenses are not provided for in the Budget (the Reimbursed Amount). Net revenues
generated on The City’s behalf for services under the Maritime Contract in excess of the
Reimbursed Amount must be remitted to The City on a periodic basis. Historically, at the direction
of The City, NYCEDC was required to remit $16.7 million for each fiscal year pursuant to the
Maritime Contract, and such amounts were included in contract and other expenses to The City.
Beginning in fiscal year 2017, to partially offset the cost of establishing and operating the NYC
Ferry service (Note 12), this amount was not required to be remitted to The City.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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3. Contracts With The City of New York (continued)
Pursuant to section 9.06 of the Maritime Contract, at any time upon written request of the Mayor
of The City or the Mayor’s designee, NYCEDC must remit to The City assets having a fair market
value up to the amount, if any, by which NYCEDC’s maritime net position exceeds $7 million.
The term of the Maritime Contract is one year commencing on July 1 and may be extended by The
City for up to one year. The City may terminate this contract at its sole discretion upon 90 days’
written notice. Upon termination of this contract, NYCEDC must remit to The City all program
funds or other assets subject to certain prescribed limits.
Other Agreements
In addition, NYCEDC remits to The City certain amounts collected from the 42nd Street
Development Project. The amount remitted from this source for fiscal years ended 2023 and 2022
was $25.4 million and $23.7 million, respectively (Note 1).
4. Grants
NYCEDC receives grants for specifically defined projects. For the years ended June 30, 2023 and
2022, grant revenue was $838.7 million and $886.9 million, of which $797.6 million and
$853.3 million comprised of reimbursement grants from and through The City, and the remaining
$41.1 million and $33.6 million was provided by other sources, respectively.
5. Land Held for Development and Real Estate Obligations Due to The City
NYCEDC may purchase land to help achieve The City’s and the Corporation’s redevelopment
goals. In fiscal years ended 2023 and 2022, the land held for development totaled $132.4 million.
Several acquisitions were obtained using capital funds from The City, and these amounts are
reflected as real estate obligations due to The City on the statements of net position. As of June 30,
2023 and 2022, real estate obligations due to The City was $125.0 million.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
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5. Land Held for Development and Real Estate Obligations Due to The City (continued)
The following table summarizes land held for development and real estate obligations due to The
City for the fiscal years ended June 30 (dollars in thousands):
2023 2022
225 125th Street, B1790, L12
$ 1,972
$
1,972
2309
–
2313 3rd Avenue,
B1790, L3, 49
858
858
236 East 126th Street, B1790 L31
183
183
246 E. 127th Street, B1791, L25
4,300
4,300
Springfield Gardens, Queens, B13432, L57
53
53
Land held for development
7,366
7,366
Boardwalk, Coney Island
105,345
105,345
1047 Home
Street, Bronx, B3006, L21
800
800
1051 Home Street, Bronx, B3006, L19
1,200
1,200
1057 Home Street, Bronx, B3006, L17
500
500
1174 Longfellow Avenue, Bronx, B2758, L14
4,000
4,000
3050 W. 21st Street, Brooklyn, B7071, L123
13,176
13,176
Due to
The
City
: real estate obligations
125,021
125,021
Total land held for development
$ 132,387
$
132,387
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
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6. Other Income
The following table summarizes other income for the fiscal years ended June 30 (dollars
in thousands):
2023 2022
Tenant reimbursements
$ 12,094
$
11,284
Developer contributions
6,149
3,499
Recovery income
5,216
6,802
Sale of leasehold
interest
–
26,289
Transfer of development rights
–
22,528
Funding agreement repayment
–
4,500
Tenant
-
liquidated damages
–
2,245
Other miscellaneous income
12,975
12,154
Total
$ 36,434
$
89,301
7. Loans and Mortgage Notes Receivable
NYCEDC has received installment notes from purchasers of certain real property sold by the
Corporation following NYCEDC’s purchase of such property from The City. The installment notes
are secured by separate purchase money mortgages on the properties sold. At June 30, 2023 and
2022, these mortgage notes totaled $7.0 million and $7.3 million exclusive of any interest
receivable, respectively.
NYCEDC has also provided loans to City businesses to advance certain economic development
objectives consistent with its corporate mission and contractual obligations with The City. These
loans were made to borrowers whose business operations are likely to generate employment,
increase tax revenue, improve the physical environment of areas, stabilize neighborhoods, or
provide other benefits to The City. Collectively, the installment notes and loans form the Finance
Programs.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
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7. Loans and Mortgage Notes Receivable (continued)
During fiscal year 2022, NYCEDC facilitated a hospital loan fund to address the needs of hospitals
in The City caused by the COVID-19 pandemic and related variants. At June 30, 2023, there were
six outstanding loans, which mature on December 29, 2023, bear interest at 1.85% and are
managed through one loan servicer. The outstanding principal, as of June 30, 2023 and 2022,
totaled $18.0 million and $24.0 million, exclusive of any interest receivable, respectively. Loan
repayments from this program are used to pay back the offsetting notes payable, bearing interest
at 1.6%, due to the bank lender, the originator of the funds to source the loans. The outstanding
notes payable balance, recorded on the Corporation’s statement of net position as non-current other
liabilities, is due on December 31, 2024 and has accrued interest of $457,000 as of June 30, 2023.
At June 30, 2023, the loan and mortgage notes portfolio consisted of 20 loans that bear interest at
rates ranging from 0% to 8% and mature at various dates through October 1, 2046.
The six hospital loans represented approximately 38% of the loan portfolio balance. Of the
remaining loans, the three largest loans represent approximately an additional 37% of the loan
portfolio balance. The composition of the entire portfolio, by industry type, at June 30, 2023 was
as follows: real estate development 16%, hospitals 38% and other services 46%.
Scheduled maturities of principal for these loans for the next five years and thereafter are
as follows (dollars in thousands):
Principal
Maturity Interest
Fiscal
year
2024
$
20,930
$
442
2025
683
465
2026
390
327
2027
2,900
320
202
8
1,204
313
202
9
–
3
3
8
,
709
1,447
203
4
–
3
8
2,074
1,136
203
9
–
4
3
8,503
433
204
4
–
4
8
1,36
2
71
4
6
,
75
5
$
4,953
Allowance for uncollectible amounts
(
6
,
996
)
Loans and
mortgage notes receivable, net
$
39,75
9
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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8. Due to/From The City of New York
NYCEDC is required to remit portions of certain amounts to The City under the Master Contract
(Note 3). The unremitted portion of such amounts at June 30, 2023 and 2022, amounted to
$18.0 million and $40.8 million, respectively.
Pursuant to the Master Contract with The City, NYCEDC recorded total grants from and through
The City in the amount of $797.6 million and $853.3 million during fiscal years 2023 and 2022,
respectively, of which $235.8 million and $229.2 million in capital funds were unpaid by The City
as of June 30, 2023 and 2022, respectively. These unpaid amounts are included in the
accompanying statement of net position as due from The City.
9. Capital and Right to Use Lease Assets
Changes in lease and capital assets for the years June 30, 2021 to June 30, 2023, consisted of the
following (dollars in thousands):
June 30,
2021
Additions/
Depreciation
Disposals
June 30,
2022
Additions/
Depreciation
Disposals
June 30,
2023
Capital assets
Equipment
$
1
7,670
$
1,310
$
(
47)
$
18,933
$
71
$
–
$ 19,004
Leasehold improvements
84,253
10,534
(2,687)
92,100
–
–
92,100
Vessels
239,045
–
–
239,045
–
–
239,045
Computer software
2,510
–
–
2,510
–
–
2,510
Work
-
in
-
progress
–
other
13,912
(11,714)
(1,822)
376
–
–
376
Capital assets
35
7,390
130
(4,556)
352,964
71
–
353,035
Less: Accumulated
depreciation/amortization
(
44,978
)
(1
9,491
)
1,3
34
(63,135)
(16,722)
–
(79,857)
Capital assets, net
$
312,412
$
(1
9,361
)
$
(3,222)
$
289,829
$
(16,651)
$
–
$ 273,178
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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9. Capital and Right to Use Lease Assets (continued)
June 30,
2021
Additions/
Depreciation
Disposals
June 30,
2022
Additions/
Depreciation
Disposals
June 30,
2023
Right to Use (RTU)
lease assets
Vehicles and equipment
$
564
$
–
$
–
$
564
$
299
$
–
$ 863
Office space
181,737
–
–
181,737
–
–
181,737
Pier 11/12
73,166
–
–
73,166
–
–
73,166
RTU lease assets
255,467
–
–
255,467
299
255,766
Less:
Accumulated amortization
–
(12,3
31
)
–
(12,331)
(12,358)
–
(24,689)
RTU lease assets, net
$
255,467
$
(12,
331
)
$
–
$
243,136
$
(12,059)
$
–
$ 231,077
Depreciation and amortization of capital assets and right to use lease assets for the fiscal years
ended June 30, 2023 and 2022, totaled $29.1 million and $31.8 million, of which approximately
$38,000 and $1.5 million was reclassed to ferry related expenses, respectively.
10. Deposits and Investments
Deposits
At June 30, 2023, NYCEDC’s cash and cash equivalents bank balance was $386.1 million, of
which $12.3 million was FDIC insured. Of the remaining balance, $167.4 million was invested in
money market funds and $206.4 million was unsecured. Emergency funds on hand amounted to
$10,000.
Investments
NYCEDC’s investment policy permits the Corporation to invest in obligations of the United States
of America, where the payment of principal and interest is guaranteed, or in obligations issued by
an agency or instrumentality of the United States of America. Other permitted investments include
short-term commercial paper, certificates of deposit and bankers’ acceptances.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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10. Deposits and Investments (continued)
As of June 30, 2023 and 2022, the Corporation had the following investments. Investments
maturities are shown for June 30, 2023, only (dollars in thousands):
Fair Value
Investment Maturities
at June 30, 2023, in Years
2023 2022
Less
Than 1 1 to 2
Greater
Than 2
Money market mutual funds
$ 167,051
$
176,772
$
167,051
$
–
$
–
Money market deposit account
356
3
60
356
–
–
FHLB notes
110,850
56,722
56,963
50,932
2,955
FFCB notes
42,938
66,604
37,989
4,949
–
FHLMC
16,772
–
5,293
9,508
1,971
Commercial paper
23,859
32,427
23,859
–
–
Certificates of deposit
204
201
204
–
–
362,030
333,086
$
291,715
$
65,389
$
4,926
Less amount classified as cash
equivalents
(167,407)
(182,092)
Total investments
$ 194,623
$
150,994
Fair Value Measurements – Fair value hierarchy categorizes the inputs to valuation techniques
used to measure fair value into these levels: Level 1 inputs are quoted prices in active markets for
identical assets, Level 2 inputs are significant other observable inputs, and Level 3 inputs are
significant unobservable inputs.
Money market funds, categorized as Level 1, are valued at the unadjusted prices quoted in active
principal markets for identical assets. U.S. Treasury and agency securities and commercial paper,
categorized as Level 2, are valued based on models using observable inputs. Certificates of deposit
are valued at cost.
Interest Rate Risk – As a means of limiting its exposure to fair value losses arising from increasing
interest rates, the Corporation limits 80% of its investments to instruments maturing within two
years of the date of purchase. The remaining 20% of the portfolio may be invested in instruments
with maturities up to a maximum of seven years.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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10. Deposits and Investments (continued)
Credit Risk – It is the Corporation’s policy to limit its investments in debt securities to those rated
in the highest rating category by at least two nationally recognized bond rating agencies or other
securities guaranteed by the U.S. government or issued by its agencies. As of June 30, 2023 and
2022, the Corporation’s investments in Federal Home Loan Bank (FHLB), Federal Farm Credit
Bank (FFCB), Federal Home Loan Mortgage Co (FHLMC) and U.S. Treasuries were rated AA+
by Standard & Poor’s, Aaa by Moody’s and AAA by Fitch Ratings. Commercial papers held were
rated A-1 by Standard & Poor’s Corporation or P-1 by Moody’s Investor’s Service, Inc.
Custodial Credit Risk – For investments, custodial credit risk is the risk that, in the event of the
failure of the counterparty, the Corporation will not be able to recover the value of its investments
or collateral securities that are in the possession of the outside party. Investment securities are
exposed to custodial credit risk if the securities are not registered in the name of the Corporation
and are held by the counterparty, the counterparty’s trust department or agent.
The Corporation manages custodial credit risk by limiting possession of its investments to highly
rated institutions and/or requiring that high-quality collateral be held by the counterparty in the
name of NYCEDC. At June 30, 2023 and 2022, the Corporation was not subject to custodial credit
risk.
Concentration of Credit Risk – The Corporation places no limit on the amount NYCEDC may
invest in any securities backed by the United States of America government. The following table
shows investments that represent 5% or more of total investments as of June 30
(dollars in thousands):
Dollar Amount and Percentage of Total Investments
June 30
2023 2022
Issuer
Federal
Home Loan Bank
$ 110,850 30.6%
$
66,604
20.0%
Federal
Farm Credit Bank
42,938 11.9
56,722
17.0
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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10. Deposits and Investments (continued)
Investment Income
Investment income includes unrealized gains and losses on investments as well as interest earned
on bank accounts, certificates of deposit and securities. Investment income (loss) amounted to
$10.0 million and ($1.9) million for the fiscal years ended June 30, 2023 and June 30, 2022
respectively.
11. Leases Receivable
As described further in Note 2, lease receivables relate to NYCEDC subleases of City-owned
properties to commercial and industrial tenants. All managed leases generally provide for base
rents plus provisions for additional rent. Certain agreements also provide for renewals at the end
of the initial lease term for periods ranging from 10 to 50 years.
Upon implementation of GASB 87 as of July 1, 2021, the Corporation recognized and measured
the lease receivable at the present value of the lease payments expected to be received during the
applicable lease, using an applicable discount rate stated or implicit in the lease, less any provisions
for uncollectible amounts. The Corporation also recognized a deferred inflow of resources at the
amount of the lease receivable, including any lease payments received from the lessee before
commencement related to future periods and less any lease incentives.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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11. Leases Receivable (continued)
The future minimum lease payments as of June 30, 2023, payable by the tenants under leases and
subleases, is as follows (dollars in thousands):
Total
Minimum
Payments
2024
$
152,837
2025
148,691
2026
144,
90
6
2027
140,763
202
8
128,934
202
9
–
203
3
600,125
203
4
–
203
8
537,779
203
9
–
204
3
520,768
204
4
–
204
8
522,121
204
9
–
205
3
528,942
Thereafter
5,
1
62,968
Total
8,588
,834
Less:
Present value
adjustment
(
6,222,979
)
Leases receivable
$
2,365,85
6
The present value of minimum lease payments shown above is comprised of current and long-term
amounts shown in the statement of net position. The thereafter category includes 46 leases with
expiration dates between January 1, 2054 and April 18, 2118.
12. NYC Ferry System
In 2016, NYCEDC contracted with HNY Ferry, LLC (HNY) for the provision of ferry services
under the new NYC Ferry system. The system is currently made up of six routes and a seasonal
shuttle that were designed to meet the transportation needs of neighborhoods traditionally
underserved by public transportation. HNY assumed operational responsibility for the then-
existing East River Ferry route in December 2016 to incorporate that route into the NYC Ferry
system. The initial NYC Ferry routes began operations between 2017 and 2018.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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12. NYC Ferry System (continued)
The net cost of these operations, which excludes capital costs, as of June 30, 2023 and 2022, was
$41.2 million and $45.3 million, respectively. To partially offset the costs to NYCEDC for
establishing and operating the ferry system, NYCEDC was not required to remit to The City
$16.7 million under the Maritime Contract or commercial rents received from the 42nd Street
Development Project (Notes 1 and 3) during fiscal years ended June 30, 2023 and 2022.
Additionally, during fiscal year ended June 30, 2022, the Corporation recognized $15.0 million
and $30.0 million of funding for NYC Ferry from City tax levy and Federal Transit Administration
funds, respectively. Any remaining deficit is funded by unrestricted resources.
13. Lease Liabilities
The Corporation classified agreements that meet the criteria for GASB 87 as lease liabilities. At
June 30, 2023 and 2022, the Corporation held leases for vehicles, equipment, office space and
piers. The vehicle and equipment leases range in duration of three to five years and terminate at
various dates through May 2026. Additionally, NYCEDC entered into two long term lease
agreement for its office space and Pier 11/12 (Brooklyn Cruise Terminal). The office lease is
effective March 2018 with an expiration date of May 31, 2039. The Pier 11/12 lease, amended and
restated as of January 1, 2009, expires on December 31, 2058.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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13. Lease Liabilities (continued)
The future minimum lease obligations and the net present value of the minimum lease payments
as of June 30, 2023 are as follows:
Vehicles and
Equipment
Office
Space Pier 11/12 Total
2024
$
336
$
11
,937
$
1,428
$
13,701
2025
190
12,972
1,493
14,655
2026
32
12,976
1,561
14,569
2027
–
12,980
1,631
14,611
2028
–
12,984
1,704
14,688
2029
–
2033
–
69,580
9,728
79,308
2034
–
2038
–
75,333
12,052
87,385
2039
–
2043
–
14,017
14,880
28,897
2044
–
2048
–
–
18,321
18,321
2049
–
2053
–
–
22,507
22,507
Thereafter
–
–
30,690
30,690
Total
$
558
$
222,77
9
$
115,99
5
339,33
2
Less: adjustment for present value
(65,240)
Lease liabilities at
June
30, 2023
$
274,092
14. Pension Plan
NYCEDC maintains a 401(a) defined contribution pension plan that covers substantially all full-
time employees. The pension plan provides for variable contribution rates by NYCEDC ranging
from 6% to 18% of the employees’ eligible wages, as defined in the IRC. NYCEDC employees
receive a nonmatching contribution in the amount of 6% of wages at the beginning of the 2nd year
of employment. This amount increases to 10% at the beginning of the 4th year of employment,
12% at the beginning of the 5th year of employment, 14% at the beginning of the 6th year of
employment, 16% at the beginning of the 11th year of employment, and 18% at the beginning of
the 16th year of employment. Employees are 100% vested at the time of contribution.
Contributions are made quarterly and are current. The plan is administered at the direction of the
NYCEDC Retirement Plan Investment Committee. Pension expense for the fiscal years ended
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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14. Pension Plan (continued)
June 30, 2023 and 2022, amounted to $6.1 million and $6.2 million, respectively, and is included
in personnel services in the accompanying statements of revenues, expenses, and changes in net
position.
15. Postemployment Benefits Other Than Pensions
NYCEDC sponsors a single employer defined benefit health care plan that provides
postemployment medical benefits for eligible retirees and their spouses. Commonly referred to as
a plan for other post-employment benefits, this plan was amended during February 2011 with an
effective date of July 1, 2011, and again in July 2016 with an effective date of June 30, 2016. The
amendments include revisions to the definition of what constitutes an eligible participant and the
closure of the plan to new participants. As a result of these amendments, the plan maintains the
current benefit structure, but plan participation will continue for only certain groups of members,
who are (i) all retired members, (ii) all active employees hired prior to April 1, 1986, who are
ineligible for Medicare coverage when they depart EDC, and (iii) all active employees who started
working prior to January 1, 2011, with (a) at least 10 years of service as of that date or (b) who
will be age 60 or older by June 30, 2024 and will have at least 10 years of service by the time they
retire.
Benefit provisions and contribution requirements for the plan are administered and managed by a
committee consisting of NYCEDC employees and can be amended by the Corporation. There is
no statutory requirement for NYCEDC to continue this plan. The plan is a contributory plan with
retirees subject to contributions established for either the Low or High version of the plan. Retirees
receiving the post-employment health benefits pay a premium amount equal to what a current
NYCEDC active employee pays, based on the retiree’s family status. Under the Low option,
retirees make contributions in the amount of $50 a month for single coverage and $100 a month
for family coverage. Effective September 1, 2022, these amounts increased to $60 monthly for
single and $120 monthly for family. Under the High option, retiree contributions are $100 a month
for single coverage and $200 a month for family coverage. Additional costs may be incurred by
the retiree under either the Low or High plan version.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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15. Postemployment Benefits Other Than Pensions (continued)
On June 27, 2018, NYCEDC established and funded the New York City Economic Development
Corporation OPEB Trust (the Trust), an irrevocable trust for the payments to fund this obligation.
All of the plan assets are maintained within the Trust, and detailed information about the OPEB
plan’s fiduciary net position is presented in the Corporation’s statement of fiduciary net position
and statement of changes in fiduciary net position.
Employees Covered by Benefit Terms – At June 30, 2023 and 2022, the following employees were
covered by the benefit terms:
Active employees
$
61
Inactive employees and/or beneficiaries currently receiving
benefit payments
42
Future retirees and beneficiaries not currently receiving
benefit payments
6
Total participants
$
109
At June 30, 2023 and 2022, benefit payments amounting to $0 and $183,952, respectively, were
paid by NYCEDC and reimbursed by the Trust in the following year from net position available
for plan benefits.
Contributions – NYCEDC has the right to establish and amend the contribution requirements. For
the fiscal years ended June 30, 2023 and 2022, the average contribution rate was 0% of covered
payroll.
Net OPEB Asset/Liability
The Corporation’s net OPEB liability and total OPEB liability was determined as of June 30, 2023
based on a roll-forward of the June 30, 2022 valuation using data as of July 1, 2021.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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15. Postemployment Benefits Other Than Pensions (continued)
Actuarial Assumptions – The total OPEB liability in the actuarial valuation was determined using
the following actuarial assumptions, applied to all periods included in the measurement, unless
otherwise specified:
I
nflation
3
.0
% per annum, compounded annually
Investment rate of return
2022
–
4.96% per annum, compounded annually
202
3
–
5.75
% per annum, compounded annually
Salary increases
4.25
%
Health
care costs trend rates
7.
55
% grading down to an ultimate rate of
4.75
% for <65,
7.15
% grading down to an ultimate rate of 4.75% for >65
Mortality rates were based on the Pub-2010 Above Median Headcount Weighted General
Mortality table with application of the MP-2021 improvement scale on a fully generational basis.
The MP-2021 improvement scale was released by the Society of Actuaries in 2021 and reflects
additional data from the Social Security Administration.
Long-Term Expected Rate of Return – The long-term expected rate of return on OPEB plan
investments was determined using a building block method in which best-estimate ranges of
expected future real rates of return (expected returns, net of OPEB plan investment expense and
inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding expected
inflation.
Discount Rate – The discount rate used to measure the total OPEB liability was 5.74% and 4.78%
at June 30, 2023 and 2022, respectively. The projection of cash flows used to determine the
discount rate does not assume any additional contributions. Based on those assumptions, the OPEB
plan’s fiduciary net position was projected to be available to make all projected OPEB payments
for current active and inactive employees until 2056. After that time, benefit payments for current
plan members will be funded on a pay-as-you-go basis.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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15. Postemployment Benefits Other Than Pensions (continued)
Investments
Investment Policy – The Trust’s investments are made in accordance with the provisions of the
Trust’s investment policy (the Investment Policy). The goals of the Investment Policy are to invest
for the sole purpose of funding the OPEB plan’s obligation of the Corporation in a prudent manner
and to conserve and enhance the value of the Trust’s assets through appreciation and income
generation while maintaining a moderate investment risk.
The Trust has retained an investment consultant to ensure that strategic investment diversification
is attained, to employ investment managers with expertise in their respective asset classes, and to
closely monitor the implementation and performance of the respective investment strategies.
The Investment Policy was adopted in April 2019 and updated in March 2023. The Trust is
currently invested in the following securities within the current investment policy limitations:
Asset Class Allocation
US
equity
20
%
Non
-
US
equity
1
0
Mult
-
Asset
1
0
Aggregate
bond
6
0
Cash
–
The Investment Policy limits the Trust to investing no more than 5% of the total portfolio in the
common stock of any one corporation. The Trust may not hold more than 5% of the outstanding
shares of any one company. Fixed-income securities of any one issuer shall not exceed 5% of the
total fixed income portfolio at the time of purchase if held in a separate account. Holdings of any
individual issue, other than issues of the United States government, may not exceed 5% of the
value of the total issue. Commingled investment vehicles such as mutual funds or common trust
or collective investment funds will be evaluated based on their diversification characteristics as
presented in their investment strategy and discipline.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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15. Postemployment Benefits Other Than Pensions (continued)
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the financial statement measurement date.
The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value
into three levels as follows:
Level 1 – Value based on quoted prices in active markets for identical assets.
Level 2 – Value based on significant other observable inputs such as a matrix pricing
technique. Matrix pricing is used to value securities based on the securities’ relationship to
benchmark quoted prices.
Level 3 – Value based on inputs that are unobservable and significant to the fair value
measurement such as discounted cash flows.
The following summarizes the Trust’s investments by type held at June 30, 2023 and 2020.
Investment maturities are shown for June 30, 2023, only (dollars in thousands):
Fair Value Maturities
Level 2023 2022 > 1 Year 1–5 Years
6–10 Years
Investment type
Money market fund
1
$ 136
$
76
$
136
$
–
$
–
Mutual funds
1
19,721
20,119
19,721
–
–
Total investments by fair value level
19,857
20,195
$
19,857
$
–
$
–
Less amounts reported as cash
equivalents per the financial
statements
(136)
(76)
Total investments per the financial
statements
$ 19,721
$
20,119
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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15. Postemployment Benefits Other Than Pensions (continued)
The Trust manages custodial credit risk by limiting possession of investments to highly rated
institutions or requiring that high-quality collateral be held by the counterparty in the name of the
Corporation.
Credit Risk – Credit risk exists when there is a possibility the issuer or other counterparty to an
investment may be unable to fulfill its obligations. The Trust has an investment policy regarding
the management of Credit Risk, as outlined above. GASB Statement No. 40, Deposit and
Investment Risk Disclosures, requires that disclosure be made as to the credit rating of all debt
security investments except for obligations of the U.S. government or investments guaranteed by
the U.S. government.
At June 30, 2023 and 2022, the Trust did not have any investment in debt securities.
Concentration of Credit Risk – Concentration of credit risk is the risk of loss that may be attributed
to the magnitude of the Trust’s investment in a single issuer. Investments of Trust assets are
diversified in accordance with the Corporation’s investment policy, which defines guidelines for
the investment holdings. The asset allocation in the investment portfolio should be flexible
depending upon the outlook for the economy and the securities markets. At June 30, 2023 and
2022, no more than 5% of the Trust’s investments were in a single issuer.
Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect
the fair value of an investment. Within cash portions of the portfolio, interest rate risk is managed
using the effective duration methodology. This methodology is widely used in the management of
cash and fixed income portfolios in that it quantifies with greater precision the amount of risk due
to interest rate changes. Interest rate risk is managed by investing in mutual funds that limit risk
by diversifying holdings and purchasing companies of lower risk.
Rate of Return – As required by GASB Statement 74, Financial Reporting for Postemployment
Benefit Plans Other Than Pension Plans, the annual money-weighted rate of return on trust
investments, net of investment expenses was 1.8% and (15.8)% for the fiscal years ended June 30,
2023 and 2022, respectively. The calculation is based on investment performance, net of
investment expense, adjusted for the changing amounts actually invested.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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15. Postemployment Benefits Other Than Pensions (continued)
Changes in Net OPEB (Asset) Liability
For the fiscal year ended June 30, 2023 (dollars in thousands):
Increase (Decrease)
Total
OPEB
Liability
Plan
Fiduciary
Net Position
Net
OPEB
Liability
(Asset)
Balances at beginning of the year
$
17,753
$
19,941
$
(2,188)
Changes for the year:
Service cost
344
–
344
Interest
856
–
856
Changes of benefit terms
–
–
–
Difference between expected and
actual experience
(18
5
)
–
(18
5
)
Changes of assumptions
(1,963)
–
(1,963)
Contributions
–
employer
–
–
–
Net
investment income
–
369
(369)
Benefit payments
(375)
(375)
–
Plan
expense
–
(96)
96
Net changes
(1,323)
(102)
(1,221)
Net OPEB
(asset)
l
iability
at
end of year
$
16,430
$
19,
8
39
$
(3,409)
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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15. Postemployment Benefits Other Than Pensions (continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate – The following presents
the net OPEB (asset) liability of the Corporation, as well as what NYCEDC’s net OPEB (asset)
liability would be if it were calculated using a discount rate that is 1 percentage point lower (4.74%)
or 1 percentage point higher (6.74%) than the current discount rate (dollars in thousands):
1%
Decrease
Discount
Rate (5.74%)
1%
Increase
Net OPEB
(
asset
)
liability,
June
30, 202
3
$
(1
,358)
$
(3,409)
$
(5,146)
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates – The
following presents the net OPEB (asset) liability of the Corporation, as well as what NYCEDC’s
net OPEB (asset) liability would be if it were calculating using health care cost trend rates that are
1 percentage point lower or 1 percent point higher (dollars in thousands):
1%
Decrease
Current
Health Care
Cost Trend
Rates
1%
Increase
Net OPEB (asset
)
liability,
June
30, 202
3
$
(5,609
)
$
(3,409)
$
(732)
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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15. Postemployment Benefits Other Than Pensions (continued)
OPEB Income and Deferred Outflows of Resources and Deferred Inflows of Resources
For the fiscal years ended June 30, 2023 and 2022, NYCEDC recognized OPEB income of
$1.1 million and $0.7 million, respectively. OPEB income and expense are reported in the
Corporation’s financial statements as part of personnel services expense. At June 30, 2023,
NYCEDC reported deferred inflows of resources related to OPEB from the following sources
(dollars in thousands):
Deferred
Inflows
Deferred
Outflows
Difference between expected and actual experience
$
402
$
500
Changes in assumptions
7,103
1,215
Difference between projected and actual investment
earnings/loss
395
3,147
$
7,900
$
4,862
Amounts reported will be recognized in OPEB expense as follows (dollars in thousands):
Fiscal year
ended
June
30:
2024
$
1,1
9
7
2025
4
70
2026
4
59
202
7
764
202
8
and thereafter
148
$
3,038
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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16. Blended Component Units
The Corporation’s operations include blended component units which are included in the
Corporation’s basic financial statements, in accordance with GASB 61, The Financial Reporting
Entity: Omnibus – an amendment of GASB Statement No. 14 and No. 34. The Corporation
includes these entities as blended component units as: (1) the Corporation and these entities have
financial benefit and burden relationships and (2) the Corporation has operational responsibility
for these entities. The blended component units include:
CLIC Captive Insurance
In 2016, NYCEDC established the City Lights Insurance Company (CLIC) as a single parent
captive insurance company wholly owned by NYCEDC. CLIC was incorporated on May 26, 2016,
and is domiciled in The State. It commenced business operations on July 1, 2016.
CLIC continues to provide coverage for two lines of insurance: cyber insurance and additional
terrorism insurance. CLIC provides excess cyber coverage to NYCEDC and each company that is
more than 50% owned and controlled by NYCEDC, with limits of $9 million per claim and in the
aggregate, in excess of $5 million of underlying insurance and self-insured retentions.
CLIC also began directly providing terrorism insurance for acts of Nuclear, Biological, Chemical
or Radiological terrorism, with limits of $6 million per occurrence and in the aggregate for any
one certified act of terrorism.
All policies provided by CLIC cover certified terrorism losses as defined under the Terrorism Risk
Insurance Act of 2002 (TRIA) and subsequent extensions. Under the TRIA coverage, the United
States Government provides a backstop on a quota share basis for 85% (beginning on January 1,
2016 and decreasing by 1% per calendar year until equal to 80%) if the total loss affecting all
involved insurers exceeds $100 million. Additionally, under Terrorism Risk Insurance Program
Reauthorization Act of 2015 (TRIPRA), the federal government’s share of insured losses gradually
decreases from 85% to 80%, dropping one percent annually beginning on January 1, 2016. During
2019, TRIA was extended again by the U.S. Treasury through 2027 with a loss trigger of
$200,000,000 and coinsurance protection of 80% for calendar year 2020 going forward.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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16. Blended Component Units (continued)
Effective December 10, 2018, CLIC began directly providing flood deductible and self-insured
retention reimbursement coverage for locations not covered by a National Flood Insurance
Program or located in Special Flood Hazard Areas as defined by the Federal Emergency
Management Agency to NYCEDC and its affiliates, with limits ranging from $500,000 to
$1,000,000 in excess of a $25,000 deductible per occurrence, with no aggregate limits.
Statement of Net Position
The following table summarizes CLIC’s financial position at June 30 (dollars in thousands):
2023 2022
Total assets
$ 4,523
$
3,893
Total liabilities
10
34
Total net position
$ 4,513
$
3,859
Statement of Revenues, Expenses, and Changes in Net Position
The following table summarizes CLIC’s change in net position for the fiscal years ended June 30
(dollars in thousands):
2023 2022
Operating revenues
$ 755
$
621
Operating expenses
101
117
Operating income
654
504
Change in net position
654
504
Total net position, beginning of fiscal year
3,859
3,355
Total net position, end of fiscal year
$ 4,513
$
3,859
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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16. Blended Component Units (continued)
City of New York Early Stage Life Sciences Fund LLC
The City of New York Early Stage Life Sciences Fund LLC (ESLSF) was formed in December of
2013, as a result of an initiative designed to champion The City’s early-stage life sciences
ecosystem. It is designed to support the development of new technologies and products for patients
and researchers, including therapeutics, medical devices, diagnostics, research and development
instrumentation, and digital life sciences technologies.
Statement of Net Position
The following table summarizes ESLSF’s financial position at June 30, 2023 and 2022 (dollars
in thousands):
2023 2022
Total assets
$ 4,332
$
3,495
Total liabilities
800
–
Total net position
$ 3,532
$
3,495
Statement of Revenues, Expenses, and Changes in Net Position
The following table summarizes ESLSF’s change in net position for the fiscal years ended June 30,
(dollars in thousands):
2023 2022
Operating revenues
$ –
$
–
Operating expenses
–
–
Operating income
(loss)
–
–
Non
-
operating income
37
1
Change in net position
37
1
Total net position, beginning of fiscal year
3,495
3,494
Total net position, end of fiscal year
$ 3,532
$
3,495
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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16. Blended Component Units (continued)
New York City Entrepreneurial Fund LLC
The New York City Entrepreneurial Fund LLC (NYCEF) was formed in February of 2010 to
facilitate the expansion of The City’s entrepreneurial sector by incentivizing new private sector
seed and early stage financing for companies based in The City.
Statement of Net Position
The following table summarizes NYCEF’s financial position at June 30 (dollars in thousands):
2023 2022
Total assets
$ 200
$
325
Total liabilities
–
–
Total net position
$ 200
$
325
Statement of Revenues, Expenses, and Changes in Net Position
The following table summarizes NYCEF’s change in net position for the fiscal years ended June 30
(dollars in thousands):
2023 2022
Operating revenues
$ –
$
–
Operating expenses
125
–
Operating income (loss)
(125)
–
Non
-
operating income
–
(600)
Interfund transfers
–
(384)
Change in net position
(125)
(984)
Total net position,
beginning of fiscal year
325
1,309
Total net position, end of fiscal year
$ 200
$
325
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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16. Blended Component Units (continued)
NYC Ferry Fleet, LLC
The NYC Ferry Fleet, LLC (NYCFF) was formed in October of 2018 to take title of purchased
ferry vessels operating in the NYC Ferry system. Depreciation expense of titled vessels is reflected
as operating costs of NYCFF.
Statement of Net Position
The following table summarizes NYCFF’s financial position at June 30 (dollars in thousands):
2023 2022
Total assets
$ 197,790
$
207,112
Total liabilities
–
–
Total net position
$ 197,790
$
207,112
Statement of Revenues, Expenses, and Changes in Net Position
The following table summarizes NYCFF’s change in net position for the fiscal years ended June 30
(dollars in thousands):
2023 2022
Operating revenues
$ –
$
–
Operating expenses
9,322
9,322
Operating loss
(9,322)
(9,322)
Capital contributions
–
–
Change in net position
(9,322)
(9,322)
Total net position,
beginning of year
207,112
216,434
Total net position, end of year
$ 197,790
$
207,112
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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16. Blended Component Units (continued)
NYC COVID-19 Emergency Services, LLC
The NYC COVID-19 Emergency Services LLC (NYCCES) was formed in April of 2020 to take
all appropriate and necessary steps to render all required and available assistance to protect the
security, well-being and health of the residents of The City and property in which The City or
NYCEDC has an interest. Such services may include, but are not limited to, making emergency
procurements of goods and services for such purposes.
Statement of Net Position
The following table summarizes NYCCES’s financial position at June 30 (dollars in thousands):
2023 2022
Total assets
$ 968
$
944
Total liabilities
934
934
Total net position
$ 34
$
10
Statement of Revenues, Expenses, and Changes in Net Position
The following table summarizes NYCCES’s change in net position for the fiscal years ended
June 30 (dollars in thousands):
2023 2022
Operating revenues
$ –
$
27
Operating expenses
–
27
Operating income
–
–
Non
-
operating income
24
1
Change in net position
24
1
Total net position, beginning of fiscal year
10
9
Total net position, end of fiscal year
$ 34
$
10
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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16. Blended Component Units (continued)
NYC COVID-19 Response, LLC
The NYC COVID-19 Response LLC (NYCCR) was formed in March of 2021 to establish a
program that will facilitate funding to address the needs of hospitals in The City caused by the
COVID-19 pandemic and the emerging new variants of the COVID-19 virus.
Statement of Net Position
The following table summarizes NYCCR’s financial position at June 30 (dollars in thousands):
2023 2022
Total assets
$ 19,144
$
24,862
Total liabilities
19,144
24,862
Total net position
$ –
$
–
Statement of Revenues, Expenses, and Changes in Net Position
The following table summarizes NYCCR’s change in net position for the fiscal years ended
June 30 (dollars in thousands):
2023 2022
Operating
revenues
$ 447
$
383
Operating expenses
447
383
Operating income (loss)
–
–
Non
-
operating income (loss)
–
–
Change in net position
–
–
Total net position, beginning of fiscal year
–
–
Total net position, end of fiscal year
$ –
$
–
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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17. Other Related-Party Transactions
New York City Land Development Corporation (LDC)
On May 8, 2012, The City formed LDC as a local development corporation organized under
section 1411 of the NPCL. LDC is engaged in economic development activities by means of the
leasing and selling of certain City-owned properties. No fees were established between NYCEDC
and LDC in the current fiscal year. Instead, the Corporation provides LDC with operating grant
funding for LDC’s general and administrative expenses. For the fiscal years ended June 30, 2023
and 2022, $2,022 and $2,021, respectively, was provided to LDC for such expenses.
New York City Industrial Development Agency (IDA)
IDA was established in 1974 as a public benefit corporation of The State. NYCEDC is responsible
for administering the economic development programs of IDA. For fiscal years ended June 30,
2023 and 2022, the Corporation earned management fee income from IDA of $4.4 million and
$4.4 million, respectively. At June 30, 2023 and 2022, the amount due from IDA totaled
$1.5 million and $0.7 million, respectively.
Build NYC Resource Corporation (Build NYC)
Build NYC was incorporated under section 1411 of the NPCL in 2013. Pursuant to an annual
agreement between NYCEDC and Build NYC, the Corporation provides management services to
Build NYC and administers its financial books and records. For fiscal years ended June 30, 2023
and 2022, NYCEDC earned management fee income from Build NYC of $2.2 million and
$2.2 million, respectively. At June 30, 2023 and 2022, the amount due from Build NYC totaled
$11,047, and $422,679, respectively.
The Trust for Cultural Resources of New York City (TCR)
Pursuant to an annual agreement between NYCEDC and TCR, a public benefit corporation created
pursuant to Articles 20 and 21 of the New York Arts and Cultural Affairs Law, the Corporation
provides TCR with management services. For the fiscal years ended June 30, 2023 and 2022,
NYCEDC earned management fees of $0.3 million and $0.3 million, respectively, from TCR. At
June 30, 2023 and 2022, the amount due from TCR totaled $22,713 and $0, respectively.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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63
17. Other Related-Party Transactions (continued)
New York City Neighborhood Capital Corporation (NCC)
NCC is a not-for-profit corporation organized under the NPCL. NCC has all power and authority
to make qualified low-income community investments in The City of New York and to allocate
federal tax credits for this purpose. NYCEDC provided full management services to NCC, and no
fees were charged for these services for the fiscal years ended June 30, 2023 and 2022. At June 30,
2023 and 2022, the amounts due from NCC for the reimbursement of costs paid by the Corporation
on behalf of NCC totaled $250 and $1,977, respectively.
Public Realm Improvement Fund Governing Group Inc. (PRIF)
PRIF, which was incorporated under NPCL and commenced operation in 2017, was created to
administer the Public Realm Improvement Fund (the Fund) for the exclusive charitable and public
purpose of lessening the burdens of government for The City and acting in the public’s interest.
Specifically, this is done by allocating funds from the Fund to implement public realm
improvement projects in East Midtown. The Corporation provided full management services to
PRIF, and no fees were charged for these services for fiscal years ended June 30, 2023 and 2022.
At June 30, 2023 and 2022, the amounts due from PRIF for the reimbursement of costs paid by
NYCEDC on behalf of PRIF, totaled $34,634 and $24,634, respectively.
18. Accounting for Derivatives and Fuel Hedging Activity
As described in Note 12, NYCEDC, on behalf of The City, contracted in June 2016 with HNY for
the provision of ferry services for the NYC Ferry system. Under the contract, NYCEDC
reimburses HNY for the cost of fuel, for which the price per gallon is subject to market conditions.
Consequently, the Corporation was authorized by its Board of Directors to implement an energy
price risk management program to manage NYCEDC’s exposure to the cost of fuel for NYC Ferry.
NYCEDC enters into all fuel hedging arrangements for the sole purpose of hedging against cash
flow fluctuations and increasing budgetary certainty. NYCEDC is represented in these transactions
by an advisor and designated evaluation agent, also known as a qualified independent
representative (QIR).
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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18. Accounting for Derivatives and Fuel Hedging Activity (continued)
The following risks are generally associated with hedging instruments:
Basis Risk – A systemic risk that arises from variations between hedge-relative price and cash/spot
price of the hedged commodity at any given point of time. However, NYCEDC uses the NY harbor
low-sulfur diesel futures pricing index as the reference for both the hedging instruments and the
delivery contracts, so there is a high correlation between the prices paid for the commodity and
the futures contracts pricing.
Cash Flow Risk – The risk of experiencing outflow of cash to meet margin calls for future contracts
due to falling prices for future contracts. This risk is naturally mitigated by the opposite movement
of the actual prices paid as compared to the futures contract prices.
Counterparty Risk – The risk that the counterparty will not fulfill its obligations under the option
contracts. NYCEDC uses exchange-traded diesel fuel futures contracts as its hedging instrument.
With this, the New York Mercantile Exchange Clearing House is the financial counterparty. Due
to a high level of regulation of the U.S. futures markets, the risk of exchange clearing house default
is extremely remote.
Termination Risk – The risk that the underlying hedge transactions will not run to maturity due to
a counterparty event. To minimize this risk, NYCEDC will not purchase contracts where the
counterparty has an option to terminate while NYCEDC is performing.
Beginning in September 2017, NYCEDC executed International Swaps and Derivatives
Association (ISDA) master agreements with Chase Bank, N.A. (JPMorgan) and Citibank, N.A.
(Citibank), paving the way to use swap and call option contracts for fuel hedging purposes. As of
June 30, 2023 and 2022, NYCEDC did not own any swap or call option contracts.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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65
18. Accounting for Derivatives and Fuel Hedging Activity (continued)
As of June 30, 2023, the fair values of NYCEDC’s commodity futures contracts, based on average
daily rates, are listed below. These contracts fall within the Level 2 category investments of the
fair value hierarchy.
Diesel Fuel
Notional
Amount –
Gallon
Number of
Contracts
Maturity
Date
Fair Value
June 30, 2023
Average
Futures Price
$/Gallon
420,000
10
Jul
-
23
$
(162,72
5
)
$
2.8350
378,000
9
Aug
-
23
(194,6
20
)
2.9569
336,000
8
Sep
-
23
(146,181)
2.8729
252,000
6
Oct
-
23
(89,712)
2.7866
252,000
6
Nov
-
23
(99,036)
2.8139
252,000
6
Dec
-
23
(72,479)
2.7026
168,000
4
Jan
-
24
8,026
2.3588
126,000
3
Feb
-
24
17,77
9
2.2500
294,000
7
Mar
-
24
(13,05
4
)
2.4112
336,000
8
Apr
-
24
(17,942)
2.4039
378,000
9
May
-
24
(22,52
9
)
2.3972
Total fair value
$
(792,47
3
)
Additionally, as a qualified operator of passenger commuter ferries providing local transit service
within New York State, NYC Ferry participates in The State’s petroleum business and sales tax
reimbursement programs. For the year ending June 30, 2023, $6.0 million was recognized as an
offset to Ferry related expenses, net, for rebates received. Of this amount, $4.0 million was for fuel
taxes HNY paid in fiscal year 2022 and prior, due to the timing of The State’s reimbursements.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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19. Commitments and Contingencies
NYCEDC has an aggregate contractual commitment of $94.0 million under different self-funded
economic development initiatives and projects, including but not limited to the NYC Ferry system
and cybersecurity initiatives.
The Corporation’s loan and loan guarantee finance programs are designed to provide financial
assistance to certain eligible businesses with the expectation of spurring economic development
benefits for The City. As of June 30, 2023, NYCEDC’s aggregate remaining commitments for
these programs is $52.9 million.
NYCEDC was the co-trustee along with 42nd Street Development Corporation (a subsidiary of
New York State Urban Development Corporation d/b/a Empire State Development Corporation
(ESDC)) for the use of certain development funds under the 42nd Street Development Project. The
trustees jointly extended a loan to the New Amsterdam Development Corporation (NADC) for
renovation of the New Amsterdam Theatre. The principal loan amount of $25.6 million was
equally disbursed by the trustees and matures on January 31, 2027. Interest on the loan has ranged
between 3.0% and 3.5%. NYCEDC’s portion of the loan, $12.8 million, was reimbursed to the
Corporation by The City. The conduit loan payment constitutes both a receivable from NADC and
a payable to The City. This transaction is not reflected in the financial statements as it does not
have any impact on NYCEDC’s financial position.
NYCEDC, and in certain situations as co-defendant with The City, LDC, NYC Ferry Fleet LLC
and/or IDA is involved in personal injury, property damage, breach of contract, environmental and
other miscellaneous claims and lawsuits in the ordinary course of business. NYCEDC believes it
has meritorious defenses or positions with respect thereto. In management’s opinion, such
litigation is not expected to have a materially adverse effect on the financial position of NYCEDC.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Notes to Financial Statements (continued)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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20. Risk Management
Given the diverse nature of projects, initiatives and assets managed by NYCEDC and its
concentrated operational geography, the Corporation is exposed to a variety of exposures and their
potential risks. Based on NYCEDC’s operations, the Corporation’s risk can largely be categorized
as theft of, damage to, and destruction of real assets; various types of injury or harm to employees
and third parties; tort law; and reputational. In response, NYCEDC diligently works to identify,
understand and, where possible, quantify these risks associated with current and potential
operations to ensure the appropriate action is implemented to properly address them. The
Corporation uses several methods to mitigate these risks, including but not limited to loss
prevention/risk engineering, contractual risk transfer, and the use of financial and commercial
insurance products.
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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Required Supplementary Information
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
68
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New York City Economic Development Corporation
(A Component Unit of The City of New York)
Schedule of Changes in Net OPEB Liability
(In Thousands)
2023 2022 2021 2020 2019 2018 2017
Total OPEB liability:
Service cost
$ 344
$
473
$
407
$
380
$
531
$
561
$
613
Interest
856
832
897
816
704
665
593
Changes of benefit terms
–
–
–
900
–
–
–
Difference between expected and actual experience
(185)
(277)
(99)
1,440
(206)
(103)
–
Changes in assumptions
(1,963)
(7,483)
2,379
(1,177)
(3,180)
(147)
–
Benefit
payments
(375)
(408)
(330)
(208)
(201)
(225)
(225)
Net change in total OPEB liability
(1,323)
(6,863)
3,254
2,151
(2,352)
(752)
(584)
Total OPEB liability
–
beginning
17,753
24,616
21,362
19,211
21,563
20,811
21,395
Total OPEB liability
–
ending (a)
$ 16,430
$
17,753
$
24,616
$
21,362
$
19,211
$
21,563
$
20,811
Total fiduciary net position:
Contributions
–
employer
$ –
$
–
$
–
$
–
$
–
$
20,000
$
–
Net investment income
369
(3,470)
1,294
2,434
1,195
–
–
Administrative
expenses paid by the Trust
(96)
(116)
(98)
(36)
–
–
–
Benefit payments
(375)
(408)
(330)
–
–
–
–
Benefits and expenses payable
–
–
–
(524)
–
–
–
Net change in fiduciary net position
(102)
(3,994)
866
1,874
1,195
20,000
–
Trust fiduciary net
position
–
beginning
19,941
23,935
23,069
21,195
20,000
–
–
Trust fiduciary net position
–
ending (b)
$ 19,839
$
19,941
$
23,935
$
23,069
$
21,195
$
20,000
$
–
Corporation
’
s net OPEB (asset) liability
–
end of fiscal year (a
-
b)
$ (3,409)
$
(2,188)
$
681
$
(1,707)
$
(1,984)
$
(1,563)
$
20,811
Trust fiduciary net position as a percentage of the total OPEB
liability
121%
112%
97%
108%
110%
93%
–
%
This schedule is intended to present information for 10 years.
Additional years will be
presented when available.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Schedule of Changes in Net OPEB Liability (continued)
(In Thousands)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
69
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New York City Economic Development Corporation
(A Component Unit of The City of New York)
Schedule of Changes in Net OPEB Liability (continued)
(In Thousands)
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
70
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Notes to schedule
Benefit Changes:
Since the prior full valuation as of June 30, 2020, assumed contributions for all future retirees were increased from $50.00 monthly for
single and $100.00 monthly for family to $60.00 monthly for single and $120.00 monthly for family. These amounts are not assumed
to increase in future years, and the change, effective September 1, 2022, has been reflected as of June 30, 2022 and valued as an
assumption change.
Changes of Assumptions:
1 Discount rate was changed from 4.78% at June 30, 2022, to 5.74% at June 30, 2023.
2 Rate of return was changed from 4.96% at June 30, 2022, to 5.75% at June 30, 2023.
3 The mortality improvement scale was updated to use MP-2021 at June 30, 2022, from the MP-2020 at June 30, 2021.
4 Healthcare cost trend rate assumptions changed from an initial rate of 6.55% for pre-Medicare and 6.15% for Medicare benefits
grading down to an ultimate rate of 4.75% in FY2027 to an initial rate of 7.55% for pre-Medicare and 7.15% for Medicare
benefits grading down to an ultimate rate of 4.75% in FY2030.
5 Demographic assumptions including the rates of retirement, termination, participation, and spousal coverage assumptions
updated to be consistent with those used for the general population in the New York City Employees’ Retirement System
(NYCERS) valuation.
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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New York City Economic Development Corporation
(A Component Unit of The City of New York)
Schedule of OPEB Contributions
(In Thousands)
2023 2022 2021 2020 2019 2018 2017
Actuarially determined
contribution
$ –
$
–
$
–
$
–
$
–
$
20,000
$
–
Contributions in relation to the
actuarially determined
contribution
–
–
–
–
–
–
–
Contribution deficiency (excess)
$ –
$
–
$
–
$
–
$
–
$
20,000
$
–
Covered
-
employee payroll
$ 7,380
$
7,903
$
8,031
$
8,405
$
8,018
$
8,231
$
7,895
Contributions as a percentage of
covered
-
employee payroll
–%
–
%
–
%
–
%
–
%
243%
26
4
%
Valuation date
s
:
June
30,
20
2
2
; r
esults were rolled
forward
to
June
30, 20
2
3
.
Actuarial cost method:
Entry age normal, level percent of pay
; s
ervice costs are attributed through all assumed ages of exit from active service.
Amortization method:
N/A
Asset valuation method:
Market values
Inflation:
3.0% per annum
Salary increases:
4.25% per annum
Investment rate of return:
5.75
%
for 20
2
3
Health care trend rates:
7
.
55
% grading down to an ultimate rate of 4.7
5
% for <65,
7.15
% grading down to an ultimate rate of 4.7
5
% for
>
65
Mortality: Based on the Pub-2010 Above Median Headcount Weighted General Mortality table published by the Society of
Actuaries in
2021
. The mortality improvement scale was updated to the M
P
-
2021
scale.
Benefit changes: Since the prior full valuation, assumed contributions for all future retirees were increased from $50.00 monthly for single
and $100.00 monthly for family to $60.00 monthly for single and $120.00 monthly for family. These amounts are not
assumed to increase in future years, and the change, effective September 1, 2022, has been reflected as of June 30, 2022
and valued as an assumption change.
New York City Economic Development Corporation
(A Component Unit of The City of New York)
Schedule of Investment Returns
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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This schedule is intended to present information for 10 years. Additional years will be presented when available.
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
73
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New York City Economic Development Corporation
(A Component Unit of The City of New York)
Schedule of Investment Returns
2023 2022 2021 2020 2019 2018
Annual money-weighted rate of return, net of investment
expense
1.8%
(15.8)%
5.6%
11.5%
6.0%
–%
This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
PRELIMINARY AND
TENTATIVE FOR DISCUSSION ONLY
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Supplementary Information
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
72
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New York City Economic Development Corporation
(A Component Unit of The City of New York)
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position
(In Thousands)
Total
Unrestricted
Maritime
Fund
NYC
Ferry Adjustment
Total
Maritime and
NYC Ferry
NYC Ferry
Fleet, LLC
Brooklyn
Army
Other
Properties
Finance
Programs
Capital
Programs
Public
Purpose
and Other
Fund
Apple
42nd Street Total
Adjustments
for GASB 87
June 30,
2023
June 30,
2022
Operating revenues:
Grants
$
150,088
$
–
$
–
$
–
$
–
$
–
$
–
$
–
$
–
$
685,569
$
3,048
$
–
$
838,705
$
–
$ 838,705
$
886,928
Property rentals
55,222
75,663
–
–
75,663
–
33,013
4,471
–
–
–
100,350
268,719
(64,776)
203,943
180,831
Ferry related revenues
–
–
19,772
(19,772)
–
–
–
–
–
–
–
–
–
–
–
–
Fee income
15,319
221
–
–
221
–
92
3
–
–
1
7
82
15,734
–
15,734
10,324
Other income
14,217
8,837
1,577
(1,577)
8,837
–
5,667
403
3
0
2
–
6,616
392
36,434
–
36,434
89,301
Other Income
–
42nd Street
73,841
–
–
–
–
–
–
–
–
–
–
(73,841)
–
–
–
–
Total operating revenues
308,687
84,721
21,349
(21,349)
84,721
–
38,772
4,877
3
0
2
685,569
9,681
26,983
1,159,592
(64,776)
1,094,816
1,167,384
Operating expenses:
Project costs
143,080
–
–
–
–
–
–
–
–
–
11,694
–
154,774
–
154,774
164,825
Program costs
–
–
–
–
–
–
–
–
368
685,569
–
–
685,937
–
685,937
670,531
Property rentals and related operating
expenses
13,121
49,895
–
–
49,895
–
24,344
3,762
–
–
–
1,710
92,832
(1,
3
6
5
)
91,467
88,663
Ferry related expenses
–
–
62,539
(21,349)
41,190
–
–
–
–
–
–
–
41,190
–
41,190
45,292
Personnel Services
61,824
7,585
–
–
7,585
–
1,773
287
19
2
–
928
551
73,140
–
73,140
67,908
Contract and other expenses to
The City
3,341
–
–
–
–
–
–
–
–
–
58
24,725
28,124
–
28,124
26,923
Office rent
11,802
–
–
–
–
–
–
–
–
–
–
–
11,802
(11,
8
02
)
–
–
Interest expense
–
leases
–
–
–
–
–
–
–
–
–
–
–
–
–
4,129
4,129
4,232
Depreciation and amortization
5,623
386
–
–
386
9,322
913
–
–
440
–
–
16,684
12,358
29,042
30,301
Other general expenses
15,224
413
–
–
413
2,652
–
153
–
13
3
–
18,575
(216)
18,359
24,036
Total operating expenses
254,015
58,279
62,539
(21,349)
99,469
9,322
29,682
4,049
713
686,009
12,813
26,986
1,123,058
3,104
,
1,126,162
1,122,711
Operating income (loss)
54,672
26,442
(41,190)
–
(14,748)
(9,322)
9,090
828
(
4
11
)
(440)
(3,132)
(3)
36,534
(67,880)
(31,346)
44,673
Non
-
operating revenues (expenses):
Income (loss) from Investments
7,265
493
–
–
493
–
–
408
931
–
896
3
9,996
–
9,996
(1,855)
Interest revenue
–
leases
–
–
–
–
–
–
–
–
–
–
–
–
–
53,883
53,883
54,858
Non
-
operating
income/(expense)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1,974)
Total non
-
operating revenues (expenses):
7,265
493
–
–
493
–
–
408
931
–
896
3
9,996
53,883
63,879
51,029
Income before transfers
61,937
26,935
(41,190)
–
(14,255)
(9,322)
9,090
1,236
520
(440)
(2,236)
–
46,530
(13,997)
32,533
95,702
Interfund transfers
10,016
(19,090)
19,090
–
–
–
(10,003)
–
–
–
(
1
3
)
–
–
–
–
–
Change in net position
71,953
7,845
(22,100)
–
(14,255)
(9,322)
(913)
1,236
520
(440)
(2,249)
–
46,530
(13,997)
32,533
95,702
Total net position, beginning of fiscal year
401,787
968
(90,
643
)
–
(89,675)
207,112
14,794
3,143
48,566
3,452
50,900
–
640,079
2,087
642,166
546,464
Total unrestricted net position, end of fiscal
year
473,740
8,813
(112,743)
–
(103,930)
–
–
–
–
–
–
–
307,803
27,721
335,524
273,534
Total restricted net position, end of fiscal year
–
–
–
–
–
197,790
13,881
4,379
49,086
3,012
48,651
–
105,628
3,384
109,012
118,753
Total net investment in capital assets, end of
fiscal year
60,182
1,813
1
2
–
1,825
197,790
13,381
–
–
–
–
–
273,178
(43,015)
230,163
249,879
Total net position, end of fiscal year
$
413,558
$
7,000
$
(112,755)
$
–
$
(105,755)
$
–
$
500
$
4,379
$
49,086
$
3,
012
$
48,651
$
–
686,609
$
(11,910)
$ 674,699
$
642,166
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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II. Government Auditing Standards Section
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
2307
-
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73
Report of Independent Auditors on Internal Control Over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
The Management and the Board of Directors
New York City Economic Development Corporation
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States (Government Auditing
Standards), the financial statements of the business-type activities and the fiduciary activities of
the New York City Economic Development Corporation (the Corporation), a component unit of
The City of New York, as of and for the year ended June 30, 2023, and the related notes to the
financial statements, which collectively comprise the Corporation’s basic financial statements, and
have issued our report thereon dated ________, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Corporation’s
internal control over financial reporting (internal control) as a basis for designing audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the
Corporation’s internal control. Accordingly, we do not express an opinion on the effectiveness of
the Corporation’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements, on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the entity’s financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses or significant deficiencies may exist that were not identified.
PRELIMINARY AND TENTATIVE FOR DISCUSSION ONLY
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74
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Corporation’s financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements, noncompliance with which could have a direct
and material effect on the financial statements. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
________, 2023
Annual Report for New York City Economic Development Corporation Run Date: 09/21/2023
Fiscal Year Ending: 06/30/2023
Status: UNSUBMITTED
Certified Date: N/A
Page 22 of 58
Summary Financial Information
SUMMARY STATEMENT OF NET ASSETS
Amount
Assets
Current Assets
Cash and cash equivalents $186,586,630.00
Investments $124,307,173.00
Receivables, net $527,924,894.00
Other assets $4,218,279.00
Total current assets $843,036,976.00
Noncurrent Assets
Restricted cash and investments $271,215,883.00
Long-term receivables, net $2,231,847,822.00
Other assets $35,057,197.00
Capital Assets
Land and other nondepreciable property $132,387,246.00
Buildings and equipment $608,800,570.00
Infrastructure $0.00
Accumulated depreciation $104,545,946.00
Net Capital Assets $636,641,870.00
Total noncurrent assets $3,174,762,772.00
Total assets
$4,017,799,748.00
Liabilities
Current Liabilities
Accounts payable $109,225,824.00
Pension contribution payable $0.00
Other post-employment benefits $0.00
Accrued liabilities $195,958,291.00
Deferred revenues $48,281,753.00
Bonds and notes payable $0.00
Other long-term obligations due within one
year
$4,760,106.00
Total current liabilities $358,225,974.00
Noncurrent Liabilities
Annual Report for New York City Economic Development Corporation Run Date: 09/21/2023
Fiscal Year Ending: 06/30/2023
Status: UNSUBMITTED
Certified Date: N/A
Page 23 of 58
Pension contribution payable $0.00
Other post-employment benefits $0.00
Bonds and notes payable $0.00
Long term leases $260,390,899.00
Other long-term obligations $2,724,484,137.00
Total noncurrent liabilities $2,984,875,036.00
Total liabilities
$3,343,101,010.00
Net Asset (Deficit)
Net Assets
Invested in capital assets, net of related
debt
$230,162,761.00
Restricted $109,011,827.00
Unrestricted $335,524,150.00
Total net assets $674,698,738.00
SUMMARY STATEMENT OF REVENUE, EXPENSES AND CHANGES IN NET ASSETS
Amount
Operating Revenues
Charges for services $862,109,279.00
Rental and financing income $216,972,326.00
Other operating revenues $15,734,441.00
Total operating revenue $1,094,816,046.00
Operating Expenses
Salaries and wages $60,095,612.00
Other employee benefits $13,044,883.00
Professional services contracts $1,000,845,827.00
Supplies and materials $836,418.00
Depreciation and amortization $29,042,718.00
Other operating expenses $22,297,183.00
Total operating expenses $1,126,162,641.00
Operating income (loss)
($31,346,595.00)
Nonoperating Revenues
Investment earnings $9,996,520.00
State subsidies/grants $0.00
Federal subsidies/grants $0.00
Municipal subsidies/grants $0.00
Public authority subsidies $0.00
Annual Report for New York City Economic Development Corporation Run Date: 09/21/2023
Fiscal Year Ending: 06/30/2023
Status: UNSUBMITTED
Certified Date: N/A
Page 24 of 58
Other nonoperating revenues $53,883,173.00
Total nonoperating revenue $63,879,693.00
Nonoperating Expenses
Interest and other financing charges $0.00
Subsidies to other public authorities $0.00
Grants and donations $0.00
Other nonoperating expenses $0.00
Total nonoperating expenses $0.00
Income (loss) before contributions $32,533,098.00
Capital contributions
$0.00
Change in net assets
$32,533,098.00
Net assets (deficit) beginning of
year
$642,165,640.00
Other net assets changes
$0.00
Net assets (deficit) at end of year
$674,698,738.00
EXHIBIT D
LDCMT-26-13307
ANNUAL INVESTMENT REPORT
Board of Directors Meeting
September 28, 2023
WHEREAS, pursuant to the requirements of the Public Authorities Accountability
Act of 2005, as amended, the Board of Directors of NYCEDC adopted investment
policies, procedures and guidelines (the “investment guidelines”); and
WHEREAS, the adopted investment guidelines require the Board to approve an
Annual Investment Report containing specified information and to submit the report to
the City’s Mayor and Comptroller and the New York State Department of Audit and
Control; and
WHEREAS, attached hereto is the Annual Investment Report for NYCEDC for
the fiscal year ended June 30, 2023; and
WHEREAS, there are certain blank dates in the reports of the auditors included
in the attached Schedule of Investments, which dates will be filled in after the Board
approves the Annual Investment Report;
NOW, THEREFORE, RESOLVED that the Board approves the Annual
Investment Report attached hereto, with the understanding that the blank dates in the
reports of the auditors will be filled in after the Board approves the Annual Investment
Report and that the Annual Investment Report will be submitted to the required officials
with the dates filled in.
Staff: Spencer Hobson, Executive Vice President and Treasurer
Amy Chan, Senior Vice President and Assistant Treasurer
LDCMT-26-13307
NEW YORK CITY ECONOMIC DEVELOPMENT CORPORATION
ANNUAL INVESTMENT REPORT
FOR THE YEAR ENDED JUNE 30, 2023
Investment Guidelines and Amendments
Attached hereto as Schedule 1 is the current investment policies, procedures and
guidelines (the “Investment Guidelines”) of New York City Economic Development
Corporation (“NYCEDC”). In the fiscal year ended June 30, 2023, the Board did not
approve any changes to the Investment Guidelines previously adopted.
Summary of Investment Guidelines
The portfolio is managed to accomplish the following objectives:
A. Preservation of Principal – The single most important objective of NYCEDC’s
investment program is the preservation of principal of funds within the portfolio.
B. Maintenance of Liquidity – The portfolio shall be managed in such a manner that
assures that funds are available as needed to meet immediate and/or future
operating requirements of NYCEDC.
C. Maximize Return – The portfolio shall be managed in such a fashion as to
maximize income through the purchase of authorized investments, taking into
account the other investment objectives.
The portfolio is structured to diversify investments to reduce risk of loss resulting from
over-concentration of assets in a specific maturity, a specific issuer or a specific type of
security. The types of investments permitted are based on those permitted for the
investment of City funds.
Independent Audit Report
Attached hereto as Schedule 2 is the annual audit report on investments for the fiscal
year ended June 30, 2023 by Ernst & Young LLP.
Investment Income Record
Investment income from interest earned on bank accounts, certificates of deposit and
securities was approximately $8,600,000 for the fiscal year ended June 30, 2023.
Fees, Commissions and Other Charges
NYCEDC did not pay any fees, commissions or other charges to an investment banker,
broker, agent, dealer or advisor during the fiscal year.
LDCMT-26-13307
SCHEDULE 1
NEW YORK CITY ECONOMIC DEVELOPMENT CORPORATION
INVESTMENT GUIDELINES
I. Purpose
The purpose of this document is to establish policies, procedures and guidelines
regarding the investing, monitoring and reporting of funds of the Corporation.
II. Scope of the Investment Policy
This policy applies to the funds of the Corporation, which for purposes of these
guidelines consist of all moneys and other financial resources available for investment
by the Corporation on its own behalf or on behalf of any other entity or individual.
III. Investment Objectives
The portfolio shall be managed to accomplish the following objectives:
A. Preservation of Principal – The single most important objective of the
Corporation’s investment program is the preservation of principal of funds within
the portfolio.
B. Maintenance of Liquidity – The portfolio shall be managed in such a manner that
assures that funds are available as needed to meet immediate and/or future
operating requirements of the Corporation.
C. Maximize Return – The portfolio shall be managed in such a fashion as to
maximize income through the purchase of authorized investments as stated
below, taking into account the other investment objectives.
IV. Implementation of Guidelines
The Chief Financial Officer shall be responsible for the prudent investment of funds
and for the implementation of the investment program and the establishment of
investment procedures and a system of controls to regulate the activities of
subordinate staff, consistent with these guidelines.
V. Authorized Investments
A. The Treasurer or an Assistant Treasurer of the Corporation is authorized to
invest funds of the Corporation as summarized and restricted below:
1. U.S. Treasury Obligations. United States Treasury bills and notes, and
any other obligation or security issued by the United States Treasury or
LDCMT-26-13307
any other obligation guaranteed as to principal and interest by the United
States.
2. Federal Agency Obligations. Bonds, notes, debentures, or other
obligations or securities issued by any agency or instrumentality of the
United States.
3. Repurchase Agreements. The repurchase agreements must be
collateralized by U.S. Government guaranteed securities, U.S.
Government agency securities, or commercial paper (of a type defined
below) in a range of 100% to 102% of the matured value of the
repurchase agreements and have a term to maturity of no greater than
ninety (90) days. They must be physically delivered for retention to the
Corporation or its agent (which shall not be an agent of the party with
whom the Corporation enters into such repurchase agreement), unless
such obligations are issued in book-entry form, in which case the
Corporation shall take such other action as may be necessary to obtain
title to or a perfected security interest in such obligations.
4. Commercial Paper. Commercial paper rated A1 or P1 by Standard &
Poor’s Corporation or Moody’s Investor’s Service, Inc. or Fitch.
5. Bankers’ Acceptances and Time Deposits of banks with worldwide assets
in excess of $50 million that are rated with the highest categories of the
leading bank rating services and regional banks also rated within the
highest categories.
6. Certificates of Deposit with New York banks, including minority-owned
banks. All such certificates of deposit in these banks must be Federal
Deposit Insurance Corporation (“FDIC”) insured, except when otherwise
collateralized.
7. Other investments approved by the Comptroller of New York City for the
investment of City funds.
B. In addition to the above investments, the Corporation may deposit funds in the
following (“Deposit Accounts”), with respect to funds needed for operational
expenses and funds awaiting investment or disbursement:
1. High quality no-load money market mutual funds that restrict their
investments to short term, highly rated money market instruments.
2. Other interest bearing accounts, if permitted by applicable laws, rules and
regulations, with New York City financial institutions designated by the
New York City Banking Commission or such other financial institutions
LDCMT-26-13307
approved by the Deputy Mayor for Economic Development or his
successor in function.
VI. Written Contracts
The Corporation shall enter into written contracts pursuant to which investments are
made which conform with the requirements of these guidelines and Section 2925.3(c)
of the Public Authorities Law unless the Board or Executive Committee determines by
resolution that a written contract containing such provisions is not practical or that
there is not a regular business practice of written contracts containing such provisions
with respect to a specific investment or transaction, in which case the Board or
Executive Committee shall adopt procedures covering such investment or transaction.
VII. Diversification
The portfolio shall be structured to diversify investments to reduce the risk of loss
resulting from over-concentration of assets in a specific maturity, a specific issuer or a
specific type of security. The maximum percentage of the total portfolio permitted in
the indicated type of eligible security is as follows:
A.
U.S. Treasury
100%
maximum
B.
Federal Agency
100%
maximum
C.
Repurchase Agreements
5% maximum
D.
Commercial Paper
25%
maximum
E.
Bankers Acceptances and
Time Deposits
25%
maximum
F.
Certificates of Deposit
20%
maximum
G.
Other Investments Approved
by Comptroller for City Funds
A percentage
deemed
prudent by
CFO
VIII. Maximum Maturity
Maintenance of adequate liquidity to meet the cash flow needs of the Corporation is
essential. Accordingly, the portfolio will be structured in a manner that ensures
sufficient cash is available to meet anticipated liquidity needs. Selection of investment
LDCMT-26-13307
maturities must be consistent with cash requirements in order to avoid the forced sale
of securities prior to maturity.
For purposes of this investment policy, assets of the portfolio shall be segregated into
two categories based on expected liquidity needs and purposes – Cash equivalents
and Investments. Assets categorized as Cash equivalents will be invested in
permitted investments maturing in ninety (90) days or less or deposited in Deposit
Accounts. Generally, assets categorized as Investments will be invested in permitted
investments with a stated maturity of no more than two (2) years from the date of
purchase. However, up to twenty percent (20%) of assets categorized as Investments
may be invested in permitted investments with a stated maturity of no more than
seven (7) years from the date of purchase.
IX. Monitoring and Adjusting the Portfolio
Those responsible for the day-to-day management of the portfolio will routinely
monitor the contents of the portfolio, the available markets and the relative values of
competing instruments, and will adjust the portfolio as necessary to meet the
investment objectives listed above. It is recognized and understood that the non-
speculative active management of portfolio holdings may cause a loss on the sale of
an owned investment.
X. Internal Controls
The Treasurer or an Assistant Treasurer, under the direction of the Chief Financial
Officer, shall establish and be responsible for monitoring a system of internal controls
governing the administration and management of the portfolio. Such controls shall be
designed to prevent and control losses of the portfolio funds arising from fraud,
employee error, misrepresentation by third parties, unanticipated changes in financial
markets, or imprudent actions by any personnel.
XI. Eligible Brokers, Agents, Dealers, Investment Advisors, Investment Bankers and
Custodians
The following are the standards for the qualifications of brokers, agents, dealers,
investment advisors, investment bankers and custodians:
A. Brokers, Agents, Dealers
1. In Government Securities: any bank or trust company organized or licensed
under the laws of any state of the United States of America or of the United
States of America or any national banking association or any registered
broker/dealer or government securities dealer.
2. In Municipal Securities: any broker, dealer or municipal securities dealer
registered with the Securities and Exchange Commission (the “SEC”).
LDCMT-26-13307
B. Investment Advisors: any bank or trust company organized under the laws of
any state of the United States of America or any national banking association,
and any firm or person which is registered with the SEC under the Investment
Advisors Act of 1940.
C. Investment Bankers: firms retained by the Corporation to serve as senior
managing underwriters for negotiated sales must be registered with the SEC.
D. Custodians: any bank or trust company organized under the laws of any state
of the United States of America or any national banking association with
capital and surplus of not less than $50,000,000.
XII. Reporting
A. Quarterly
The Treasurer or an Assistant Treasurer, under the direction of the Chief
Financial Officer, shall prepare and deliver to the Board of Directors once for
each quarter of the Corporation’s fiscal year a report setting forth a summary of
new investments made during that quarter, the inventory of existing investments
and the selection of investment bankers, brokers, agents, dealers, investment
advisors and auditors.
B. Annually
1. Audit – the Corporation’s independent accountants shall conduct an
annual audit of the Corporation’s investments for each fiscal year of the
Corporation, the results of which shall be made available to the Board of
Directors at the time of its annual review and approval of these Guidelines.
2. Investment Report – Annually, the Treasurer or an Assistant Treasurer,
under the direction of the Chief Financial Officer, shall prepare and the
Board of Directors shall review and approve an Investment Report, which
shall include:
a. The Investment Guidelines and amendments thereto since the last
report;
b. An explanation of the Guidelines and any amendments made since
the last report;
c. The independent audit report required by Subsection (1) above;
d. The investment income record of the Corporation for the fiscal year;
and
e. A list of fees, commissions or other charges paid to each
investment banker, broker, agent, dealer and advisor rendering
LDCMT-26-13307
investment associated services to the Corporation since the last
report.
The Investment Report shall be submitted to the Mayor and the
Comptroller of the City of New York and to the New York State
Department of Audit and Control. Copies of the report shall also be made
available to the public upon reasonable request.
XIII. Applicability
Nothing contained in these Guidelines shall be deemed to alter, affect the validity of,
modify the terms of or impair any contract, agreement or investments of funds made
or entered into in violation of, or without compliance with, the provisions of these
Guidelines.
XIV. Conflict of Law
In the event that any portion of this policy is in conflict with any State, City or federal
law, that law will prevail.
XV. No Conflict With Other Policies of the Corporation
These Investment Guidelines do not modify the powers given by the Corporation’s
Board of Directors which authorized and resolved that (i) officers of the Corporation
are authorized and directed to obtain and maintain any bank, investment, securities
and other financial accounts as may be necessary or useful to the Corporation in
furtherance of the Corporation’s operations (the “Accounts”); (ii) the Treasurer and
Assistant Treasurer are authorized and directed to engage in trading or otherwise deal
in securities and other investments on behalf of the Corporation and to the extent
authorized pursuant to these Guidelines; (iii) the officers of the Corporation are
authorized and directed to perform those tasks necessary or useful to ensure that the
Corporation, acting through those authorized officers listed in the Bylaws of the
Corporation, has access to and control over the Accounts; (iv) the Directors adopted
the standard forms of banking resolutions and incumbency certificates ordinarily used
by such financial institutions selected by the officers of the Corporation; and (v) any
officer of the Corporation was authorized to certify, to the due adoption of such
banking resolutions and incumbency certificates. Empowered officers may enter into
agreements with banks and financial institutions for bank accounts and to purchase
investments of the type indicated in these Investment Guidelines and other
investments specifically approved by the Corporation’s Board of Directors.
These Investment Guidelines do not modify any restriction, if any, otherwise imposed
on various types of funds held by the Corporation, such as any restrictions set forth in
any third party contracts with the City, or resulting from the source of funds (e.g.
federal funds). Those other restrictions, to the extent inconsistent with these
Investment Guidelines, shall govern. If possible, all sets of restrictions should be
LDCMT-26-13307
complied with. Furthermore, by adopting these Investment Guidelines, the Board is
not amending or superseding any approval given or hereafter given for investments
related to particular projects.
SCHEDULE 2
PRELIMINARY AND TENTATIVE FOR
DISCUSSION ONLY
S C H E D U L E O F I N V E S T M E N T S
New York City Economic Development Corporation
(A Component Unit of the City of New York)
Years Ended June 30, 2023 and 2022
With Reports of Independent Auditors
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DISCUSSION ONLY
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New York City Economic Development Corporation
(A Component Unit of the City of New York)
Schedule of Investments
Years Ended June 30, 2023 and 2022
Contents
Report of Independent Auditors.......................................................................................................1
Schedule of Investments ..................................................................................................................4
Notes to Schedule of Investments ....................................................................................................5
Report of Independent Auditors on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Schedule of Investments
Performed in Accordance with Government Auditing Standards ................................................................. 9
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Report of Independent Auditors
The Management and the Board of Directors
New York City Economic Development Corporation
Report on the Audit of the Schedule of Investments
Opinion
We have audited the Schedule of Investments of the New York City Economic Development
Corporation (the Corporation), a component unit of the City of New York, as of June 30, 2023 and
2022, and the related notes (the schedule).
In our opinion, the accompanying schedule presents fairly, in all material respects, the investments
of the Corporation at June 30, 2023 and 2022 in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United
States of America (GAAS) and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States
(Government Auditing Standards). Our responsibilities under those standards are further described
in the Auditor’s Responsibilities for the Audit of the Schedule section of our report. We are
required to be independent of the Corporation, and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audits. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Schedule
Management is responsible for the preparation and fair presentation of the schedule in accordance
with accounting principles generally accepted in the United States of America and for the design,
implementation, and maintenance of internal control relevant to the preparation and fair
presentation of the schedule that is free of material misstatement, whether due to fraud or error.
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Auditor’s Responsibilities for the Audit of the Schedule
Our objectives are to obtain reasonable assurance about whether the schedule as a whole is free of
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the schedule.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the schedule, whether due to fraud
or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the schedule.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Corporation’s internal control. Accordingly, no such
opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the schedule.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the Corporation’s ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
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3
Report on Financial Statements as of June 30, 2023 and 2022
We have audited, in accordance with GAAS and Government Auditing Standards, the financial
statements of the Corporation as of and for the years ended June 30, 2023 and 2022, and our report
thereon, dated ________, 2023, expressed an unmodified opinion on those financial statements.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we also have issued our report dated
________, 2023, on our consideration of the Corporation’s internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters with respect to the schedule. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the Corporation’s
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Corporation’s
internal control over financial reporting and compliance with respect to the schedule.
________, 2023
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4
New York City Economic Development Corporation
(A Component Unit of the City of New York)
Schedule of Investments
(In Thousands of Dollars)
June 30,
2023 2022
Operating
$ 154,691
$
110,110
Restricted
207,339
222,976
Total investments
$ 362,030
$
333,086
The accompanying notes are an integral part of this schedule.
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New York City Economic Development Corporation
(A Component Unit of the City of New York)
Notes to Schedule of Investments
June 30, 2023
1. Background and Organization
NYCEDC is a not-for-profit corporation organized under the New York State Not-for-Profit
Corporation Law (the NPCL) that generates income that is exempt from federal taxation under
section 115 of the Internal Revenue Code (IRC). NYCEDC’s primary activities consist of
rendering a variety of services to administer certain economic development programs on behalf of
the City of New York (the City) relating to the attraction, retention and expansion of commerce
and industry in the City. These services and programs include encouragement of construction,
acquisition, rehabilitation and improvement of commercial and industrial enterprises within the
City, the provision of financial assistance to qualifying business enterprises as a means of helping
to create and retain employment therein, managing, developing and promoting the City’s
waterfront, markets, aviation, freight and intermodal transportation, including the NYC Ferry
system, and workforce development and recruitment programs. These services are generally
provided under two annual contracts with the City: the amended and restated contract (Master
Contract) and the Maritime Contract. The services provided under these contracts and other related
agreements with the City are herein referred to as the Contract Services.
In order to provide these services, NYCEDC primarily generates revenues from property rentals
and real estate sales. To present the restricted assets of NYCEDC’s rental portfolio in a manner
consistent with the limitations and restrictions placed upon the use of resources and NYCEDC’s
contractual agreements with the City and other third parties, NYCEDC classifies its asset
management operations into the following five portfolios:
Commercial Leases Portfolio: NYCEDC manages property leases with various commercial
and industrial tenants. For ground leases, these agreements include restrictions on the use of
the land to the construction or development of commercial, manufacturing, industrial or
residential facilities. The City-owned properties are leased to NYCEDC, which, in turn
subleases the properties to commercial and industrial tenants. The leases generally provide for
base rent payments plus provisions for additional rent.
Brooklyn Army Terminal Portfolio: The Brooklyn Army Terminal (BAT) is an industrial
property owned by the City that is leased to NYCEDC. NYCEDC, in turn, subleases the
properties to commercial and industrial tenants. Under the terms of the BAT lease, a reserve
account of $500,000 was established from net BAT revenues for property operating and capital
expenses.
New York City Economic Development Corporation
(A Component Unit of the City of New York)
Notes to Schedule of Investments (continued)
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1. Background and Organization (continued)
Maritime Portfolio: This portfolio was established to account for NYCEDC’s management and
maintenance of wharf, waterfront, public market, public aviation, and intermodal
transportation properties and the NYC Ferry system on the City’s behalf pursuant to the
Maritime Contract.
Other Properties Portfolio: This portfolio was established to account for the activities of certain
City-owned properties and other assets for which NYCEDC assumed management
responsibilities. Pursuant to various agreements between NYCEDC and the City, the net
revenue from three of the properties is retained for property operating and capital expenses or
for expenses of projects in the area.
42nd Street Development Project Portfolio: This portfolio was established as a joint effort
between the City and New York State (the State) to redevelop the 42nd Street district between
7th and 8th Avenues into a vibrant office and cultural center. By October 2012, ownership of
all the properties was transferred from the State to the City. NYCEDC also assumed
management and administrative responsibilities for all leases in connection with the 42nd
Street Development Project as governed by the Master Contract with the City.
Beginning in fiscal year 2017, to partially offset the costs to NYCEDC for establishing and
operating the NYC Ferry service (Note 12), the Corporation has not been required to remit
rental revenues from the Project to the City. NYCEDC, however, is required to pass through
to the City, all payments in lieu of taxes and real estate taxes collected from the Project.
2. Summary of Significant Accounting Policies
Investments
Investments held by NYCEDC are recorded at fair value.
3. Investments
NYCEDC’s investment policy permits the Corporation to invest in obligations of the United States
of America, where the payment of principal and interest is guaranteed, or in obligations issued by
an agency or instrumentality of the United States of America. Other permitted investments include
short-term commercial paper, certificates of deposit and bankers’ acceptances.
New York City Economic Development Corporation
(A Component Unit of the City of New York)
Notes to Schedule of Investments (continued)
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7
3. Investments (continued)
As of June 30, 2023 and 2022, the Corporation had the following investments. Investment
maturities are shown for June 30, 2023, only (dollars in thousands):
Investment Maturities
Fair Value at June 30, 2022 (In Years)
2023 2022 Less Than 1 1 to 2
Greater Than
2
Money market mutual funds
$ 167,051
$
176,772
$
167,051
$
–
$
–
Money market deposit account
356
360
356
–
–
FHLB notes
110,850
56,722
56,963
50,932
2,955
FFCB notes and bonds
42,938
66,604
37,989
4,949
–
FHLMC
16,772
–
5,293
9,508
1,971
Commercial paper
23,859
32,427
23,859
–
–
Certificates of deposit
204
201
204
–
–
$ 362,030
$
333,086
$
291,715
$
65,389
$
4,926
Fair Value Measurements – Fair value hierarchy categorizes the inputs to valuation techniques
used to measure fair value into these levels: Level 1 inputs are quoted prices in active markets for
identical assets, Level 2 inputs are significant other observable inputs, and Level 3 inputs are
significant unobservable inputs.
Money market funds, categorized as Level 1, are valued at the unadjusted prices quoted in active
principal markets for identical assets. U.S. Treasury and agency securities and commercial paper,
categorized as Level 2, are valued based on models using observable inputs. Certificates of deposit
are valued at cost.
Interest Rate Risk – As a means of limiting its exposure to fair value losses arising from increasing
interest rates, the Corporation limits 80% of its investments to instruments maturing within two
years of the date of purchase. The remaining 20% of the portfolio may be invested in instruments
with maturities up to a maximum of seven years.
New York City Economic Development Corporation
(A Component Unit of the City of New York)
Notes to Schedule of Investments (continued)
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3. Investments (continued)
Credit Risk – It is the Corporation’s policy to limit its investments in debt securities to those rated
in the highest rating category by at least two nationally recognized bond rating agencies or other
securities guaranteed by the U.S. government or issued by its agencies. As of June 30, 2023 and
2022, the Corporation’s investments in Federal Home Loan Bank (FHLB), Federal Farm Credit
Bank (FFCB), Federal Home Loan Mortgage Co (FHLMC) and U.S. Treasuries were rated AA+
by Standard & Poor’s, Aaa by Moody’s and AAA by Fitch Ratings. Commercial papers held were
rated A-1 by Standard & Poor’s Corporation or P-1 by Moody’s Investor’s Service, Inc.
Custodial Credit Risk – For investments, custodial credit risk is the risk that, in the event of the
failure of the counterparty, the Corporation will not be able to recover the value of its investments
or collateral securities that are in the possession of the outside party. Investment securities are
exposed to custodial credit risk if the securities are not registered in the name of the Corporation
and are held by the counterparty, the counterparty’s trust department or agent.
The Corporation manages custodial credit risk by limiting possession of its investments to highly
rated institutions and/or requiring that high-quality collateral be held by the counterparty in the
name of NYCEDC. At June 30, 2023 and 2022, the Corporation was not subject to custodial credit
risk.
Concentration of Credit Risk – The Corporation places no limit on the amount NYCEDC may
invest in any securities backed by the United States of America government. The following table
shows investments that represent 5% or more of total investments as of June 30
(dollars in thousands):
Dollar Amount and Percentage of Total Investments
Issuer June 30, 2023 June 30, 2022
Federal
Home Loan Bank
$ 110,850 31%
$
56,722
17
%
Federal Farm Credit Bank
42,938 12
66,604
20
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Report of Independent Auditors on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of the
Schedule of Investments Performed in Accordance
with Government Auditing Standards
The Management and the Board of Directors
New York City Economic Development Corporation
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States (Government Auditing
Standards), the Schedule of Investments (the schedule) of the New York City Economic
Development Corporation (NYCEDC), a component unit of the City of New York, as of June 30,
2023 and the related notes to the schedule, and have issued our report thereon dated ________,
2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the schedule, we considered the NYCEDC’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the schedule, but
not for the purpose of expressing an opinion on the effectiveness of the NYCEDC’s internal
control. Accordingly, we do not express an opinion on the effectiveness of the NYCEDC’s internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements, on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the entity’s schedule will not be prevented, or detected and corrected on
a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal
control that is less severe than a material weakness, yet important enough to merit attention by
those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
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not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the NYCEDC’s schedule is free of
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, grant agreements and the New York State Comptroller investment guideline
requirements as presented in Section 201.3(c) of the Accounting, Reporting and Supervision
Requirements for Public Authorities, noncompliance with which could have a direct and material
effect on the schedule.
However, providing an opinion on compliance with those provisions was
not an objective of our audit, and accordingly, we do not express such an opinion. The results of
our tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
________, 2023
EXHIBIT E
LDCMT-26-13493
PERFORMANCE MEASUREMENT REPORT
Board of Directors Meeting
September 28, 2023
The Public Authorities Law requires New York City Economic Development
Corporation (“NYCEDC”) to annually review its mission statement and measurements
by which the performance of NYCEDC may be evaluated and, on November 15, 2022,
NYCEDC’s Board approved a mission statement and performance measures for Fiscal
Year 2023.
The Authorities Budget Office requires that NYCEDC annually report on
performance results with regard to the approved measures. Attached hereto as
Attachment A is NYCEDC’s report with regard to the performance measures for Fiscal
Year 2023 and a chart that includes definitions/explanations of how the information in
the measurement report was determined. For comparison purposes, the measurements
for the Fiscal Year 2022 and Fiscal Year 2021 are also included in Attachment A.
Authority Performance Measurement Report for Fiscal Years 2023, 2022 and 2021
Name of Public Authority: New York City Economic Development Corporation (“NYCEDC”)
Performance Measures
FY22 to FY23
Changes
FY23 Actuals
7/1/22-6/30/23
FY22 Actuals
7/1/21-6/30/22
FY21 Actuals
7/1/20-6/30/21
Management of core assets
Occupancy rate of NYCEDC-managed property
99.1% 99.2% 98.7%
Square footage of assets actively managed by NYCEDC
64,602,360 64,748,100 64,493,808
Revenue generated by NYCEDC asset portfolio*
$320,265,987 $290,758,159 $250,365,200
Strengthening the city’s competitive position; inclusive innovation and
economic growth
Number of businesses served by industry-focused programmatic initiatives
4,690 6,301 6,200
Percentage of private sector jobs in innovation industries (calendar year)
15.5% 15.5% 15.5%
MWBE participation rate (Local Law 1)
31.7% 35.2% 31.9%
MWBE award rate (Local Law 1)
29.2% 38.5% 40.9%
Facilitate investments that grow quality jobs
Projected new private investment leveraged on the sale/long-term lease of City-
owned property
$140,390,801 $220,929,029 $589,065,993
Percentage of project employees that were reported to be earning a Living Wage or
more in the previous fiscal year**
100.0% (FY22) 99.8% (FY21) 99.9% (FY20)
Capital expenditures related to asset management*
$52,817,201 $56,436,854 $37,356,729
Total jobs at Project Locations (New York City Administrative Code §22-823)**
190,465 (FY22) 197,523 (FY21) 200,421 (FY20)
Cultivate dynamic, resilient, livable communities throughout the five boroughs
Average monthly NYC Ferry ridership
549,705 447,782 312,082
Total capital expenditures (excluding asset management and funding agreements)*
$485,651,145 $516,188,813 $428,557,416
Square feet of graffiti removed
6,172,500 3,395,210 207,500
Percentage of active projects in boroughs outside of Manhattan**
75% (FY22) 75% (FY21) 75% (FY20)
Distribution of active projects by borough:
% of projects in the Bronx
- 16% 16% 16%
% of projects in Brooklyn
- 26% 27% 27%
% of projects in Manhattan
- 25% 25% 25%
% of projects in Queens
- 27% 27% 26%
% of projects in Staten Island
- 6% 5% 5%
* FY22 and/or FY21 data have been revised to reflect NYCEDC’s audited financial statements or updates to available data.
** This metric represents the prior fiscal year data, which is the most recent data available.
Definitions/Explanations - Authority Performance Measurement Report for Fiscal Years 2023, 2022 and 2021
Performance Measures
Definitions
Management of core assets
Occupancy rate of NYCEDC-managed property
For NYCEDC-managed properties, the number of square feet leased as a percent of the total available space.
Square footage of assets actively managed by NYCEDC
The square footage of assets in which NYCEDC, on behalf of the City, is responsible for the day to day management and leasing of the
property.
Revenue generated by NYCEDC asset portfolio
Revenue generated from NYCEDC’s portfolio of assets. For FY22, this measure was updated to include revenue generated from the NYC
Ferry system. In order to allow for consistency in year-over-year comparisons, FY21 data was updated based on the same methodology and
parameters.
Strengthening the city’s competitive position; inclusive
innovation and economic growth
Number of businesses served by industry-focused
programmatic initiatives
The number of businesses engaged in NYCEDC’s programmatic initiatives, including NYCEDC’s incubator network and centers for
excellence, technology competitions, partnership funds and programmatic ventures throughout the five boroughs.
Percentage of private sector jobs in innovation industries
(calendar year)
The share of jobs within sectors designated as “advanced,” “innovative” and “creative” by the Brookings Institution, HR&A Advisors and
NYCEDC as a percent of all private sector jobs. This indicator is reported on a calendar year basis.
MWBE participation rate (Local Law 1)
The ratio of MWBE contract expenditures to total contract expenditures with MWBE goals. Participation/attainment is referring to payments.
MWBE award rate (Local Law 1)
Actual MWBE awards made to individual firms on NYCEDC contracts. Awards are specific awards to MWBE firms. May or may not be known
at contract execution (won’t be with CM and retainer contracts, for example).
Facilitate investments that grow quality jobs
Projected new private investment leveraged on the sale/long-
term lease of City-owned property
The net present value of the total investment of private entities in connection with the sale or long-term lease of City-owned property. Private
investment includes land sale or lease, and hard (site work and building construction) and soft (architecture and engineering) development
costs. The data is extrapolated in the year that the transaction closes (land sale closing or lease execution), and reflects the anticipated total
private investment associated with these projects.
Percentage of project employees that were reported to be
earning a Living Wage or more in the previous fiscal year
The number of employees on projects receiving financial assistance from New York City Industrial Development Agency, Build NYC
Resource Corporation, or NYCEDC programs that earned a living wage or more than a living wage as defined by the Fair Wages for New
Yorkers Act as a percent of the total number of project employees.
Capital expenditures related to asset management
Based on an accrual basis, the amounts paid to firms (architecture, landscape architecture, engineering, resident engineering, etc.),
construction managers, construction contractors, etc. for capital project related services on NYCEDC-managed property.
Total jobs at Project Locations (New York City Administrative
Code §22-823)
All Full-Time Equivalent jobs at Project Locations as reported during a given annual period pursuant to New York City Administrative Code
§22-823 (the “Annual Investment Projects Report”). Every year, through the Annual Investment Projects Report, NYCEDC provides
information on projects supporting investment, job creation, job retention, and growth in New York City. This FY22 Annual Investment
Projects Report included information on 453 projects receiving Financial Assistance in the form of loans, grants, and tax or energy benefits.
The report also includes information on 35 sales and 94 leases of City-owned land.
Cultivate dynamic, resilient, livable communities
throughout the five boroughs
Average monthly NYC Ferry ridership
The average monthly ridership of commuters traveling on the NYC Ferry system as reported to NYCEDC.
Total capital expenditures (excluding asset management and
funding agreements)
Based on an accrual basis, the amounts paid to firms (architecture, landscape architecture, engineering, resident engineering, etc.),
construction managers, construction contractors, etc. for capital project related services.
Square feet of graffiti removed
The square feet of graffiti removed by power-washing and painting through Graffiti-Free NYC, the City’s graffiti removal program.
Percentage of active projects in boroughs outside of
Manhattan
The percentage of all Projects as reported during a given annual period pursuant to the Annual Investment Projects Report, which are located
in boroughs outside of Manhattan.
