TESTIMONY
by Ernest Tollerson, Senior Vice President,
Research and Policy
PARTNERSHIP FOR NEW YORK CITY

New York, New York
June 16, 2005

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7 Line Extension Testimony NYC Department of Citywide Administrative Services and the Metropolitan Transportation Authority

The Partnership for New York City, representing the city’s major employers and business leaders, seeks to promote public policies that contribute to the growth, vitality and diversity of our city economy. We are here today because our research suggests that extension of the 7 Line is one of the best public investments the city could make, in terms of generating new jobs and tax revenues.

The recently approved rezoning plan for the Hudson Yards on the Far West Side will result in significant private investment in residential and commercial development. The value of this development and its ultimate contribution to the economy of the city will be determined in large measure by whether the 7 line extension moves forward. Job-generating commercial development, in particular, will be far more substantial if the area is to be connected to the city’s commuter rail and mass transit system. Similarly, the utilization and success of the expanded Jacob K. Javits Convention Center and hotel will be significantly enhanced by a subway connection.

In 2003, the Partnership studied several of the major transportation proposals on the regional drawing board. Our study found that the 7 line extension has significant economic and transportation benefits for the City—far more than any other major mass transit project contemplated in the MTA Capital Plan.

Our study found that this subway will produce seven times its capital cost in economic development benefits—$14 billion in economic benefits for the $2 billion the extension will cost. When combined with the many zoning and infrastructure improvements planned for the neighborhood—including new commercial and residential development and the expansion of the Javits Center—the economic impact of the 7 line extension could grow to nearly $90 billion.

We also believe development of the Far West Side could be a model for development throughout the City. The plan proposed—using zoning incentives to finance infrastructure improvements such as the extension of the Number 7 line—is an important innovation to the City’s approach to managing and funding development. It should be considered a precedent for other areas across the city.

The prospect of development on the Far West Side has raised an important question —do we really need this much new office space and won’t development on the West Side hurt the resurgence of Lower Manhattan? We believe that commercial and retail development on the World Trade Center site, along with the 9/11 memorial, must be the city’s first priority. But this should not prevent development from proceeding in other neighborhoods.

The Far West Side was identified as an important development opportunity in 2001 by the ‘Group of 35’ CEO’s convened by Senator Charles Schumer and co-sponsored by the Partnership. The Group of 35 issued a report that recommended a West Side extension of Manhattan’s midtown business district as part of a five-borough strategy for generating jobs and economic growth in the 21 st century. Research by that group projected a need for some 60 million square feet of new office space over the next few decades. Over the coming years, as New York City continues to grow, there will be enough demand for office space both on the West Side and in Lower Manhattan.

That is why the Partnership believes the 7 line extension is so important for the economic future of New York City. We support the 7 line extension and urge that the project be started as soon as possible. Thank you.

The Partnership for New York City (www.pfnyc.org) is a network of business leaders dedicated to enhancing the economy of the five boroughs of New York City and maintaining the city’s position as the global center of commerce, culture and innovation.