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New York City Council
Lease agreements concerning storefront premises
Read summaries and jump into the video at the segment start.
Council staff asks attendees to quiet down, silence devices, and notes that testimony sign-up forms are available in the hallway. Staff then turns the floor over to the chair to begin.
Council Member Shanel Thomas-Henry calls the hearing to order, introduces herself as chair of the Committee on Small Business, and describes how rising rents and complex leases are displacing small businesses across the city. She frames the hearing around four bills aimed at helping businesses stay and grow.
Thomas-Henry walks through each bill: Intro 90 (Brewer) on commercial lease transparency, Intro 408 (Riley) on social media influencer matching, Intro 578 (Gutierrez) on IBZ Boundary Commission reform, and Intro 874 (Maloney) on a legacy business registry and preservation fund. She thanks staff and recognizes colleagues present.
Gale Brewer describes her years of advocacy for mom-and-pop stores and the task force report that led to Intro 90. She outlines the bill's key provisions including written lease requirements, renewal protections, pre-lease disclosures, cure periods, contact information requirements, and SBS oversight with model lease templates.
Virginia Maloney explains that legacy businesses are part of the city's fabric but face rising rents and operating costs. She describes Intro 874 as creating a registry for businesses operating 20+ years and a preservation fund to help at-risk businesses stay open.
Chair Thomas-Henry recognizes that Council Member Hanif has joined and turns to committee counsel to administer the affirmation. Haris Khan of SBS affirms to tell the truth before the committee.
Haris Khan introduces himself and describes SBS's mission and recent initiatives including the NYC Future Fund, the Office of Street Vendor Services, the Cannabis NYC Loan Fund, the Coney Island BID, $8.4 million in neighborhood development grants, and the Open for Small Business regulatory reform package.
Khan states SBS supports the goals of Intro 90 on lease transparency, supports a legacy business registry under Intro 874 but wants to discuss fund operational challenges, has concerns with Intro 408's social media matching pilot, and defers on Intro 578's IBZ commission reforms pending the administration's broader economic growth agenda.
Frank Morano cites that only 13 Staten Island businesses were served by the commercial lease assistance program in FY2024 and asks how many applied, were turned away, or were even aware of the program. Khan explains no one is turned away, there is no backlog, and uptake correlates with the raw number of storefront businesses per borough.
Morano points out that under Intro 874 a landlord could receive up to $22,500 while a five-person business gets only $2,500, and asks what safeguards ensure landlords pass benefits to businesses. Khan says the registry should move first and the fund requires further discussion with sponsors.
Morano asks about the identity of the mayoral appointee representing the industrial community on the IBZ Boundary Commission. Khan explains the commission was last convened in 2014, its purpose is boundary designation, and the administration is developing a broader economic growth agenda that should inform any commission changes.
Morano distinguishes between viral videos and real revenue impact, asking how SBS would determine whether the social media pilot generates actual customers. Khan agrees further discussion is needed and emphasizes SBS wants a scalable, curated program rather than one serving only a handful of businesses.
Thomas-Henry asks whether the commission is defunct and whether 2014 members would still serve. Khan explains the commission could be convened today as members are office holders except the mayoral appointee, and that prior administrations chose not to convene it.
Thomas-Henry asks what services the commercial lease assistance program provides. Khan describes pre-litigation services including lease review, up to 40 hours of pro bono legal support, and notes the program has served 3,700 unique businesses with 11,000 services since launch, including 1,850 in FY26.
Thomas-Henry asks about recurring needs from businesses served. Khan says lease review is the most common casework, notes challenges for businesses with limited English proficiency, and describes SBS sending mailers to businesses from open data to promote programs. He confirms services are available in multiple languages with multilingual staff.
Thomas-Henry asks whether SBS tracks lease renewal rates citywide. Khan says SBS only has data from businesses in their program, not citywide renewal rates, but does track citywide occupancy and vacancy rates and uses neighborhood development grants to address hotspot areas.
Brewer asks about the storefront database and whether there are trends away from handshake leases. Khan explains the database tracks occupancy and vacancy but not lease-level detail, and acknowledges verbal leases still exist, noting some businesses may prefer month-to-month arrangements over triggering renegotiation.
Brewer asks what SBS advises when a business faces a massive rent hike. Khan says SBS provides rights and obligations information but acknowledges the affordability crisis, pointing to the mayor's Open for Small Business reforms and EO18's analysis of non-regulatory cost drivers including rent.
Brewer calls the Manhattan commercial rent tax horrible and asks SBS to add it to their list of considerations. Khan says he is aware of the CRT and believes state enabling legislation sets it up, and will take the concern back to City Hall.
Maloney asks how SBS tracks longstanding businesses being closed or displaced and the scale of the problem. Khan says SBS tracks occupancy and vacancy rates but not length of ownership, and notes complications like businesses that change ownership but keep the same name, such as Nathan's Hot Dogs.
Maloney asks what tools would best help longstanding small businesses facing displacement. Khan discusses challenges including succession planning, describes the worker cooperative business transition option, and provides the owner-to-owner transition hotline number for businesses looking to sell to their workers.
Maloney asks whether SBS has data on social media marketing trends and current engagement with social media companies and influencers. Khan describes existing webinars, the May Small Business Month Expo panel on content creation, and says SBS has relationships with social media companies and content creators but no in-house trend data.
Thomas-Henry asks whether SBS formally partners with social media influencers. Khan describes working with influencer Dandy in the Bronx for the commissioner's appointment announcement and Megan Daly for BID education, and notes the mayor himself partnered with the chair to promote NYC Business Express services.
Kayla Santosuosso asks about anticipated operational challenges if SBS were required to create a content matching system. Khan emphasizes the need for clear expectations, guardrails, and careful program design, and expresses willingness to work with the bill sponsor.
Santosuosso describes the Alpine Theater in Bay Ridge, the oldest independently owned cinema in NYC, facing $400,000 annual property taxes and potential closure. Khan acknowledges the issue relates to property tax calculations based on square footage and says it falls under DOF and City Hall policy.
Brewer asks whether SBS supports businesses in going online, noting that 30% online sales can be a lifeline for some businesses. Khan confirms SBS provides resources to help businesses digitize, integrate sales platforms, and compete in the online economy.
Thomas-Henry asks whether Executive Order 11's review of small business costs includes property tax issues. Khan clarifies EO 11 focuses on city-imposed fines, fees, and violations, while property tax policy is handled by City Hall, DOF, and OMB, though some state-level reforms have been identified.
Thomas-Henry asks whether SBS could implement the social media matching program with existing resources. Khan says an expansion would require additional resources but SBS already has recurring social media marketing webinars built into programming and would welcome deepening the work.
Yusef Salaam notes Manhattan has the highest vacancy rate and asks for a breakdown for Community District 10 and corridors like 125th Street. Khan provides a 13.9% vacancy rate for the district, notes upper Manhattan and downtown have higher rates, and says the Manhattan average is around 13%.
Salaam asks what SBS does to connect Harlem residents to jobs in nearby Port Morris and Hunts Point IBZs. Khan explains the IBZ Boundary Commission's purpose is separate from workforce services, and describes the 18 Workforce One centers including one on 125th Street that connects roughly 22,000 New Yorkers to jobs.
Salaam raises concerns that Harlem's Black-owned and immigrant businesses faced redlining and disinvestment, making 20-year track records harder to document. Khan acknowledges the concern and says SBS wants to work with sponsors on defining legacy business criteria, suggesting a nomination system with trusted community leaders.
Thomas-Henry asks about SBS outreach to businesses along Second Avenue affected by the next subway phase. Khan describes SBS services including financing assistance through CDFIs, and Thomas-Henry notes many Black and brown businesses prefer grants over loans and asks whether the administration has considered financial assistance for infrastructure-impacted businesses.
Thomas-Henry presses on whether the administration has considered providing grants similar to other municipalities during major infrastructure projects. Khan notes the Second Avenue project is an MTA project, says such a program doesn't currently exist in the city, and mentions Council Member Salaam's related bill on construction grants is under review.
Thomas-Henry asks whether SBS has ever referred businesses to the state's historic business registry. Khan says SBS's legacy-specific service is the worker cooperative transition option, and notes 6,400 businesses with 20+ years of operation have benefited from SBS programs overall.
Thomas-Henry asks whether SBS investigates why landlords in high-vacancy areas aren't leasing spaces. Khan describes walkthroughs with electeds, BIDs, and community stakeholders, and notes commercial district needs assessments help map community needs, though reaching landlords can be difficult.
Thomas-Henry asks whether SBS counsels small businesses on the option of purchasing their property instead of leasing. Khan says businesses don't typically ask about purchasing and SBS doesn't have a specific service for it, but notes SBS does connect businesses to SBA loans for property purchases when requested.
Thomas-Henry asks what advertising resources are available to small businesses. Khan describes digital marketing support, social media best practices, and the Link Local program with LinkNYC kiosks that provides neighborhood-based advertising with an easy-to-use template for business owners.
Thomas-Henry asks whether SBS cross-promotes its various services when a business comes in for one program. Khan confirms SBS cross-promotes all relevant services during outreach and direct interactions, noting they serve 22,000 businesses annually and many become repeat clients.
Thomas-Henry asks how to ensure demographic equity in legacy business nominations and assistance, noting Queens has many legacy Black and brown entrepreneurs. Khan says SBS wants to work closely with the bill sponsor and committee on all parameters including equity criteria.
Maloney asks about partnerships with LinkNYC, Made in NYC, and private companies like Neon for a social media pilot. Khan confirms the LinkNYC partnership, describes workforce development collaboration with Made in NYC (MoM), and says he'd like to learn more about Neon and other private matchmaking platforms.
Thomas-Henry opens the floor for public testimony, reminds attendees of decorum rules, no recording from the witness table, two-minute time limits, and instructions for submitting written testimony within 72 hours.
Whitney Hu reads a statement from Adam Glenn, owner of Jimmy's Corner, urging the Council to support the Small Business Rent Stabilization Act (Resolution 496), which was pulled from today's hearing. She emphasizes that rent is the core driver of business closures and all four bills are good but insufficient without rent stabilization.
Francesca Bruce of the Grand Street BID in East Williamsburg supports all four bills, highlighting that nearly half of storefronts are minority or women-owned and 35% report declining business. She describes Intro 874 as reforming perverse displacement incentives, Intro 90 as leveling the playing field, and Intro 408 as going beyond education to direct assistance.
Ki-Sung of the Grand Street and Graham Avenue BIDs describes East Williamsburg's legacy businesses, with 22% operating 20+ years and the oldest in continuous operation for 97 years. He notes businesses lack administrative capacity for certifications and succession planning, and urges systemic, proactive support beyond conventional loans and webinars.
Amauris Gurujung, co-founder and CEO of Bronx Native, describes how social media and content creation helped grow his business and strongly supports Intro 408. He argues connecting local businesses with content creators benefits both businesses and local creative talent.
Thomas-Henry asks Gurujung about his social media practices and recommendations for implementing Intro 408, and asks Ki-Sung about proactive support models. Ki-Sung describes a pilot legacy business registry and challenges with SBS outreach reaching family-run operations, noting most businesses lack time for expos and webinars.
Brewer asks how BIDs handle rent increase issues given that landlords sit on BID boards. Ki-Sung acknowledges the challenging dynamic, describes commercial warehousing by property owners hoping for better returns, and expresses support for legislation that could level the playing field.
Commercial real estate broker Steve Soutendijk supports transparency provisions of Intro 90 but opposes the mandatory one-year lease extension, arguing it disrupts the market, delays new businesses waiting for spaces, and could make owners more cautious about leasing to newer businesses.
Retail broker Joanne Podell, a former small business owner, argues the retail market is strong and successful tenants renew early. She contends the mandatory extension would delay the next generation of businesses and make owners less willing to take chances on new entrepreneurs.
Zach Steinberg of the Real Estate Board of New York supports Intro 90's transparency provisions but opposes the mandatory lease extension, arguing it disrupts transactions and disadvantages new businesses. REBNY supports Intro 874's voluntary incentive model as a better approach.
Brewer pushes back on the brokers' characterization of a healthy retail market, citing her experience that mom-and-pop businesses struggle to reach landlords and face dramatic rent increases. She notes that the 'next entrepreneur' is often a chain store and emphasizes the need for teeth to protect small businesses.
Lacey Tober, representing Brooklyn BP Antonio Reynoso, supports Intro 578's reforms to the IBZ Boundary Commission but warns convening the commission is risky given development pressures. She urges codifying IBZ protections through zoning changes and supporting industrial business solutions providers.
Leah Archibald of Evergreen, a North Brooklyn local development corporation, supports Intro 578 and shares data showing industrial employment increased 9% in the North Brooklyn IBZ while 25% of industrial land was lost citywide. She warns developers are already approaching IBZ areas for residential conversion.
Nora Lewis of the Long Island City Partnership urges support for reforming the IBZ Boundary Commission, noting IBZs support 500,000 well-paid jobs. She describes opportunities to co-locate housing with light manufacturing in parts of the LIC IBZ and emphasizes the need for local voices in boundary decisions.
Thomas-Henry asks for clarity on the panel's position about convening the commission. Tober, Archibald, and Lewis explain they support the legislation's reforms but believe convening is risky right now, with Archibald warning developers are already inquiring about residential conversion in IBZ areas.
Thomas-Henry transitions to virtual panelists and explains the procedures for remote testimony, including waiting for the sergeant at arms to announce the start.
Jessica Walker supports most of Intro 90's transparency provisions but opposes the mandatory lease extension, arguing it would hurt first-time and immigrant-owned businesses. She strongly supports Intro 874's voluntary incentive model and Intro 408's content creator pilot, and notes the chamber's free help desk at bizhelp.nyc.
Catherine Mursak, a worker-owner at a Chelsea yoga cooperative, testifies that long leases don't help if businesses can't afford rising rent. She urges the Council to advance commercial rent stabilization legislation, distinguishing it from rent control, and disputes claims that commercial rents remain below pre-pandemic levels.
Laura Sewell describes her organization's work mapping legacy businesses on the Lower East Side and assisting with state historic business registry nominations. She expresses interest in Intro 874's eligibility requirements and offers community-based data as a resource for legislators and SBS.
Lisa Sorin of the Bronx Chamber of Commerce supports Intro 408, noting that AI training and website creation programs have been among the chamber's most popular offerings. She argues the bill bridges the digital divide and positions NYC as a national leader in leveraging the creative economy for local development.
Olympia Kazi, testifying in a personal capacity as an urbanist and former Nightlife Advisory Board vice chair, urges the Council to reintroduce and hear commercial rent stabilization legislation. She echoes disappointment that Resolution 496 was not discussed and notes the issue has been raised for over 50 years.
Lindsay Vigoda of Small Business Majority supports the Storefront Business Bill of Rights as a starting point but urges the Council to go further with commercial rent stabilization, commercial leasing incentives for high-vacancy areas, and strong UDAP protections with a private right of action for small businesses.
Thomas-Henry confirms no one else wishes to testify, reminds attendees that written testimony can be submitted within 72 hours, and adjourns the hearing.