Focus on Projects
The real estate industry is on particular edge. Executives there enjoyed a friendly relationship with Cuomo, who drew big donations and has “been in theory their champion,” according to Mitchell Moss, professor of urban policy and planning at New York University Wagner.
Cuomo adopted fiscal policies and chose projects, such as reviving transportation hubs, that fit into his vision for attracting business and fostering New York as the world’s financial capital. Those priorities were viewed favorably by Wall Street, said Kathryn Wylde, president of the Partnership for New York City, a civic group of corporate executives.
Cuomo also promised when taking office to eventually reduce taxes. “And I would say that’s the attitude most people on Wall Street supported,” Wylde said. “They saw him as defending stronger economies and avoiding actions that would increase taxes.”
The tax promises proved difficult, especially as the pandemic wracked the city. Cuomo backed down, passing a recent budget that increased taxes for the richest New Yorkers.
Shifting Power
Projects that could be affected by his exit include a plan to redevelop Pennsylvania Station and the surrounding area to help reshape Midtown. Vornado Realty Trust, a major New York landlord, owns much of the land targeted for development.
There are already fresh signs of resistance. Inside the Port Authority, staff sent a letter to executive director Rick Cotton this week, urging officials to put the brakes on Cuomo’s controversial push to build an AirTrain to LaGuardia Airport, the New York Daily News reported.
In a statement, the Port Authority said it’s committed to building the LaGuardia AirTrain to help provide environmentally friendly transit. “The policy of the Port Authority is that every concern reported by an employee is taken and treated seriously,” it said. “This will be no exception.”
Without Cuomo’s skill at channeling cash to projects, executives will have to tap power wherever they can find it, Moss said. That’ll likely turn to jockeying to influence lawmakers, he said.
“The legislature is going to be much more important, because the new governor isn’t going to have the same ties to the real estate industry,” Moss said. “The legislature is going to have an opportunity to assert itself on many issues.”
This article was provided by Bloomberg News.