Adam Sichko of The Business Review writes about new rules that could limit home building in suburban areas and further hurt New York’s struggling economy.

“Developers and builders are bracing themselves for new legislation aimed at squashing suburban sprawl—with some fearing that it could limit what they build and slow down projects.

The bill, which sailed through the Legislature last month, requires state agencies to prioritize infrastructure funding to only projects that meet what are called “smart growth” principles.

The idea is to drive mixed-use development in areas that already have roads, power lines, sewers and water pipes in place.”

To read more click here.

Nick Reisman writes on Pressconnects.com - “New York lawmakers are trying to compel the state to cough up more than $1 billion for 232 construction projects around New York that are due to start later this year.

Assemblyman Richard Brodsky, D-Greenburgh, Westchester County, and Sen. Martin Dilan, D-Brooklyn, introduced a measure on Wednesday that would allow state agencies to start funding the projects in which more than 80 construction firms had been identified as the lowest bidders.

The concern is that some projects set to break ground this summer won’t have the necessary funding in place to start on time.

Final approval of the contracts, however, has been delayed by the lack of a state budget, now more than two months late.

“We’ve got over $1.1 billion in new construction projects that are just in limbo,” Steve Stallmer, a spokesman for the Associated General Contractors, an Albany-based trade group. “We’re missing the entire construction season. There are some projects for July and August that won’t even be able start.”

TO read more click here.

According to the state comptroller, even though New York has fared better than many other states, the housing market conditions continue to threaten homeowners with foreclosures and reduced home values. Foreclosures, a soft housing market and declining property values can impact local government and school district finances, particularly downstate.

To read the press release click here.

To read the report click here.

A unified Republican  conference in the Senate defeated a disastrous bill that would have stopped economic development projects all over the state by convincing three upstate Democrats to join them in opposition.

The Business Council vigorously opposed the bill (S.1635) that would have given individuals standing to bring lawsuits alleging violations of the environmental quality review provisions of the Environmental Conservation Law. These lawsuits could have halted numerous construction projects around the state and discouraged future investment and development. Read The Business Council’s opposition memo here.

Republican Senator Michael Ranzenhofer led the opposition debate saying, “I think the passage of this bill would put up a sign saying New York is closed for business.”

He added that the legislation would be “devastating” for his community in western New York.

Listen to his debate.

The Business Council of New York State opposes the above referenced legislation that enacts The New York State Construction Fair Play Act. Part SS of the Assembly Budget Article VII bill (A.9706-B) creates the presumption that all workers at a construction site are employees.

Part SS of the Assembly Budget Article VII bill (A.9706-B) establishes a presumptive three part test in the construction industry that would destroy the independent contractor status for many workers. Under the proposed three part test any person performing services for a contractor or subcontractor shall be classified as an employee unless all of the following criteria are met: (a) the individual is free from control and direction in performing the job, both under his or her contract and in fact; (b) the service must be performed outside the usual course of business for which the service is performed; and (c) the individual is customarily engaged in an independently established trade, occupation, profession, or business that is similar to the service at issue.

To read more click here.

Vital road and bridge construction projects are being halted due to the state budget crisis and Gov. David Paterson’s decision to halt state payments for existing construction contracts.

Gannett News Service reporter Joseph Spector explains that the suspension of payments is creating chaos.

He writes:  “The state’s recent decision to withhold
state aid for road projects has prompted contractors
to shut down some construction across New York,
putting people out of work and leading to repair
delays.

Private contractors said Wednesday they have shut
down sites in the Hudson Valley and central New
York and expect widespread stoppages if the state
doesn’t soon release aid for the road work.

Some contractors said they have laid off dozens of
workers, in some cases as many as 100 employees,
because the companies are not getting paid.

In all, more than 500 active construction projects in
New York could be affected, totaling $5 billion in
contracts. Also, the state has halted awarding any�
new construction contracts, leaving scores of other
projects in doubt.”

Read the story.

The Business Council of New York State, Inc. agrees with the construction industry that this work is needed and the funding should be released.

“New York must maintain a safe and viable infrastructure. The current suspension of payments for existing construction projects puts all of us at risk,” said Kenneth Adams, president and CEO of The Business Council of New York State, Inc.

“Safe roads and bridges are vital to our economy. They allow for the free flow of goods, services and employees,” added Adams. “New York cannot shirk the responsibility to maintain our roads and bridges.”

Read the full Business Council statement.

U.S. Transportation Secretary Ray LaHood applauded the Senate for extending critical transportation funding that has been held up since last Friday, disrupting work for thousands of federal and transportation workers nationwide. Kentucky Sen. Jim Bunning’s decision to block the legislation last week forced the DOT to furlough nearly 2,000 employees without pay Monday, temporarily shut down highway reimbursements to states worth hundreds of millions of dollars, as well as national anti-drunk driving efforts, and multi-million dollar construction projects across the country. “I am pleased that the Senate has acted to break its logjam and extend the Highway Trust Fund for another 30 days,” said Secretary LaHood. “This means that our valued employees may return to work. It also means that their important work getting the economy back on its feet, ensuring Americans’ safety and keeping critical construction projects moving will be able to continue.”

The Department of Transportation will furlough nearly 2,000 employees without pay Monday, temporarily shutting down highway reimbursements to states worth hundreds of millions of dollars, national anti-drunk driving efforts, and multi-million dollar construction projects across the country.

The action comes as a result of Kentucky Sen. Jim Bunning’s decision to block key legislation that would have extended several critical priorities for middle class families. That legislation covered tax credits for COBRA health coverage, unemployment insurance for 400,000 people, as well as the short-term extension of the Highway Trust Fund. The Fund supports all surface transportation programs for the nation - highways, bridges, transit and safety inspections, as well as efforts to encourage seat belt use and to fight distracted and impaired driving.

To read more click here.

New York Times reporter Danny Hakim writes that Gov. David Paterson in a bid to shore up his standing with labor unions is preparing legislation to require prevailing wages be paid on construction projects that receive public financing.

He writes:  “The legislation, which has the business community alarmed, would also impose wage requirements on large businesses that use space created by developments financed with public money, according to a draft of the bill. In New York City, those requirements would be $19.20 an hour — nearly three times the minimum wage — for a wide variety of workers.

The bill would exempt some projects, though it would cover a great many developments involving both private business and civic institutions. The governor’s proposal comes after labor unions and business leaders were unable to negotiate their own compromise earlier this year.

Labor advocates said the bill would ensure that fair wages are paid on projects financed with public money through industrial development agencies, which provide below-market-rate financing throughout the state, particularly in New York City, for hospitals, private schools, malls and any number of other development projects. But the business community said the changes would render the development agencies useless, effectively killing an important economic development tool amid a recession.

The importance of industrial development agencies has grown as the state phases out its Empire Zone program, another incentive for development.

“Why — in the middle of the worst crisis since the Great Depression — would the governor want to kill an economic development program that has created over 200,000 new jobs?” said Kenneth Adams, the president of the Business Council of New York State. “It’s a proposal that destroys hope for economic recovery in New York.”

Read the full story.

A new study of New York’s legal system conducted by Pacific Research Institute (PRI), a nationally known research firm, has concluded that New York’s legal system is the third worst in the country and is costing taxpayers millions of dollars through higher taxes and increased costs for goods, insurance and health care.  Savings derived from reforming the system would go a long way towards reducing New York’s multi-billion dollar budget deficit.  The study was conducted on behalf of New Yorkers for Lawsuit Reform, a statewide coalition of business, health care and consumer groups.

 “New York now faces a perfect storm of high tort costs, high tort-litigation risks, clogged courthouses, and nearly no tort reforms to balance a lopsided civil justice system,” said the report’s author, Dr. Lawrence J. McQuillan.

 The study found that, compared to all other states, New York’s legal system is “at the bottom of the barrel in various measures of state tort performance.  It has the second highest direct tort losses, the fourth worst relative tort losses, the fourth worst relative tort litigation risks, the third worst tort system overall, and the third worst tort rules and reforms on the books.”

“This study shows the enormous costs that every New York business and citizen carries because the state’s legal system is so weighted in favor of the trial attorneys,” said Kenneth Adams, president & CEO of The Business Council of New York State, Inc. “Real reform of the legal system could lower the cost of government, spur construction activity, lower health care costs and make New York more attractive as a place to do business.”

Read the full study.