Did you know that last year New York City attracted as much fintech venture capital as all of Europe combined? That and more from the Partnership Fund for New York City CEO Maria Gotsch at the Innovate Finance Global Summit.
Recent FinTech Innovation Lab graduate AlphaPoint has provided a trading platform to the CME Group and The Royal Mint (TRM) for the first fully gold backed blockchain cryptocurrency. The coin is called “RMG” and is very similar to Bitcoin in technology. Users will be able to store the token themselves without the need for a bank or other custodian, they will also be able redeem the token for physically delivered gold. The new blockchain-based product is an entire trading eco-system for gold, providing speed, security as well as transparency of direct ownership.
Leaders of the downstate business and medical research communities are hailing a $620 million, ten-year plan to build a state-wide life sciences industry cluster that was put forward by Governor Cuomo and adopted by the legislature as part of the 2017-18 state budget this weekend. The Regional Economic Development Councils of Long Island, the Mid-Hudson Valley and New York City, as well as the Long Island Association, Partnership for New York City, and Business Council of Westchester, have been leading advocates for what they contend will be New York State’s next big industry, projected to add over $3 billion in annual economic activity and 24,000 new jobs.
The details of the plan include:
- $320 million for services and expenses, loans, and grants as well as costs associated with program administration for a life sciences initiative. Eligible costs may include, but are not be limited to lab space, equipment, technology, R&D, and venture capital investments in support of a comprehensive life sciences cluster strategy. $320 million includes $10 million annual cap on venture capital funding and $20 million for bioscience research labs and academic medical centers.
R&D Tax Credit
- For a company that employs ten or more persons during a taxable year, a fifteen percent credit for qualified R&D expenses can be claimed;
- For a company that employs less than ten persons during a taxable year, a twenty percent credit for qualified R&D expenses can be claimed;
- Companies have a $500,000 annual tax credit limit. There is a three-year limit per company.
- $10 million aggregate cap annually.
Kathryn Wylde, President and CEO of the Partnership for New York City said, “This forward-looking commitment to life sciences puts New York at the forefront of one of the world’s fastest growing industries, leveraging the enormous assets of our medical research institutions to generate new businesses and jobs.”
Kevin Law, President and CEO of the Long Island Association and Co-Chair of the LI REDC said, “New York has invested heavily in basic research over the years, but with Governor Cuomo’s new program, we are moving to support the growth of businesses that will generate a real return on that investment for the state and for our great academic medical centers and research institutions.”
Cheryl A. Moore, President and CEO of the New York Genome Center said, “This investment helps foster a more vibrant life science community in our region by creating jobs to attract talented researchers, entrepreneurs and innovators, and will allow the sector to ultimately gain insights leading to treatments, diagnostics and therapeutics for serious disease. This investment benefits all New Yorkers, both by making us more competitive, and by leading in life science innovation.”
Marsha Gordon, President and CEO of the Business Council of Westchester said, “The Mid-Hudson region has Regeneron, which is a model for what can be accomplished: a homegrown company that today has 4000 employees. We have a base to build on, but state incentives are necessary to expand and accelerate the growth of our commercial life sciences cluster.”
Winston Fisher, New York City REDC Co-Chair said, “The New York City region is looking forward to partnering with other regional councils to leverage our widely varied assets into a powerful cluster of life sciences activity that diversifies our economy and creates good jobs.”
Following the Partnership’s meeting with 50 of its members and President Trump, CEO Kathryn Wylde speaks with Stuart Varney of Fox Business on how government and the private sector can work together to modernize New York’s crumbling infrastructure.
The Partnership for New York City Holds Day of Meetings at the White House and Capitol Hill with Over 50 CEOs
WASHINGTON D.C., April 4, 2017—Today, over 50 CEOs, led by the Partnership for New York City, which represents the city’s business leaders and largest private sector employers, held a series of meetings with the President Trump, Cabinet Members and Senior White House Officials. Later today they will also meet with members of Congress.
The Partnership for New York City is in Washington D.C. on Tuesday, April 4, for meetings with President Trump and other federal officials. Over 50 CEOs representing New York’s largest private sector employers will participate in a series of conversations with Cabinet Members, Senior White House Officials and leaders of Congress to advocate for federal policies that promote the continued growth and economic vitality of New York City and our country’s other urban centers.
With an economic impact of over $740 billion annually, New York City stands apart as a hub for innovation and opportunity for Americans. Keeping the city at the forefront of global markets requires cooperation at every level of government. In addition to sharing their expertise, Partnership members are looking to learn more about lawmakers and White House goals for enhanced public and private collaboration. Specific topics on the agenda include plans to build bi-partisan support for modernizing infrastructure, improving workforce and job training programs, enhancing national and cyber security, and reforming tax and regulatory policies.
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New York City is in a fiscal position to forego some revenue in its 2017-18 budget to encourage business growth and job creation. It is time to scale back the Commercial Rent Tax, which is unique to this city. Manhattan commands the highest commercial rents in the country and its tenants are heavily taxed in many other ways. Requiring a business tenant in Manhattan to pay a 6% tax on its rent adds insult to injury. The Partnership for New York City joins other business organizations from across the city to urge the mayor and city council to provide CRT relief for some Manhattan employers in order to encourage their growth.
During the darkest days of America’s urban crisis, David foresaw New York’s renaissance. He dedicated himself to mobilizing the collective resources of business, government, labor, and the civic sector, to make this the great world city that it is today. He inspired generations of individual and corporate philanthropists to invest in the city and its great institutions. He worked to ensure that New York would remain an inclusive and open city, welcoming immigrants and sustaining a strong middle class. He led initiatives to build stronger neighborhoods, better schools, a vibrant public transportation system and a more diverse economy. His first job—as an assistant to Mayor LaGuardia—gave him a granular knowledge of the five boroughs that he applied throughout his life. The Partnership’s David Rockefeller Fellows Program, which prepares business executives to expand their civic contributions to New York, is a permanent tribute to his legacy. We also thank the New York State Senate for their resolution mourning the death of David Rockefeller; their warm remembrance further concretizes David Rockefeller matchless contribution to our city and state.
His imprint on the city will never be forgotten.
How the titan of New York business rallied bankers to rebuild the city
By Kathryn Wylde
March 21, 2017
I was introduced to David Rockefeller in 1981 by labor leaders Harry Van Arsdale and Peter Brennan, who wanted New York’s banks to fund the rebuilding of burned-out city neighborhoods with housing for working people. They asked me to write a proposal to give David, who was then CEO of Chase Manhattan Bank. In a matter of months, I ended up as one of the first employees of the Partnership for New York City, responsible for managing a public-private initiative to build 30,000 new homes on vacant lots across the five boroughs.
Up to that point, I shared the stereotypical view of the Rockefellers as New York’s royalty. What I came to learn was that David, who died Monday at 101, was a gentleman, but not a patrician. His values were those that define the culture of New York: generosity, intellectual rigor, can-do spirit, everybody under one big tent.
In establishing the Partnership, David’s first instinct was to include leaders from business and labor, but union leaders turned him down, saying they had constituencies that would not understand. He knew it would take the power of the city’s corporate CEOs to help government deal with the many crises of the day (fiscal, public safety, education and exodus of its middle class, to name a few). But this was a group comprised exclusively of white men who did not reflect the diversity of the city, so David reached out to Harlem real estate executives George Brooker and Lloyd Dickens, Hunter College President Donna Shalala, Arthur Barnes of the New York Urban Coalition, Jewell Jackson McCabe of 100 Black Women and others who could ensure that the Partnership was in touch with the priorities of the entire city.
He scheduled every Partnership board meeting in a different borough. At the first meeting in Brooklyn, one CEO announced that this was a location he preferred to fly over. David was not deterred.
David brought in newly elected President Ronald Reagan and impressed on him that a public-private partnership was something that business and government would do together, not one where the business community was going to take over government’s job. The only time David got upset with me was when I suggested that the banks were backing our housing initiatives because they were mandated to by the Community Reinvestment Act. He firmly responded, “You are wrong. We are doing it because it is the right thing, not because the government told us to.”
True, when the Partnership had its annual meeting at Rockefeller’s Pocantico Hills estate, there was a traffic jam of executive helicopters hovering over Tarrytown. David was, after all, New York royalty. But the unique respect in which he was held was not because of his wealth and power, but rather because of the way he consistently deployed these resources for the greater good of our city and all of its people.
When David finally stepped down as chairman of the Partnership in 1987, Arthur Barnes gave a speech in which he quoted a lyric from an old song: “If I never had a cent, I’d be rich as Rockefeller,” noting that David could have reached down to anyone in the city, but instead he always reached out in a spirit of humility and love.
Kathryn Wylde is President and CEO of the Partnership for New York City.
The Technion Institute is the engine driving Israel’s emergence as a “Start-up Nation” where tech businesses are thriving. Its partnership with the New York Genome Center represents an opportunity to bring the same ability to generate entrepreneurial activity in the life sciences to our state. This is a very good move on the Governor’s part.