By Connor Adams Sheets
Borough President Helen Marshall held a public hearing Tuesday morning on two large-scale, mixed-use development projects proposed for construction in the heart of downtown Flushing.
Marshall did not rule on whether she supports the projects and comments ran largely along the lines of those heard at last month’s marathon public hearing before Community Board 7 on the Flushing Commons and Macedonia Plaza projects, but the issue of compensation for local business owners remained the key point of contention for most opponents.
Flushing Commons would be built on the current site of Municipal Lot 1, and Macedonia Plaza would be built adjacent to that on land owned by the Macedonia AME Church. The site for both projects is bounded by Union Street, 37th and 39th avenues and 139th Street.
The concerns of merchants that they will not be able to weather the negative impacts from the construction at both sites on parking and revenues attracted the attention of Marshall, who said she would work to address them. But she also praised the projects.
The issue of how to compensate business owners on Union Street, 37th Avenue and other nearby streets who expect severe drops in business during construction has gained traction in recent weeks, and many prominent area officials are pledging to tackle the problem in a fair manner.
State Assemblywoman Grace Meng (D-Flushing) and state Sen. Toby Stavisky (D-Whitestone) are working in conjunction with City Councilman Peter Koo (R-Flushing), Gov. David Paterson’s office and economic development experts on state legislation to find an agreement that works for business leaders.
Meng said they are considering tax credits, assistance with signage and marketing and other means of alleviating the impacts.
“Right now we want to obviously involve the small businesses. We’ve been having informal conversations with small business owners to make sure it works for them,” Meng said. “We want to make sure we provide the best solutions.”
The city has said that $2 million will be set aside to help offset revenue drops at the affected businesses, but many merchants said that amount is not enough.
Ikhwan Rim, a jewelry store owner and president of the Union St. Merchants Association, who spoke on behalf of 150 Union Street merchants, estimated that 400 to 500 small businesses will be affected by the construction for a period of more than three years. He calculated based on that information that each business will receive $140 in compensation per month if $2 million is the only money dispersed as compensation.
“Rent is $5,000 to $7,000 [per month] for what we’re paying right now, so I think $140 a month is very low,” he said, explaining that merchants expect their business to decline by 20 percent to 30 percent during the work.
Marshall was responsive to his concerns.
“Everyone is willing to look at a package that is better for the small businesses,” she said. “I’m sure you are going to be listened to to the best advantage for the merchants.”
Marshall has until May 5 to make a non-binding recommendation on the proposal, which will then head to the city Planning Commission for approval. The Council has the final say on whether the projects will be built.
Reach reporter Connor Adams Sheets by e-mail at csheets@cnglocal.com or by phone at 718-260-4538.
