Good afternoon.

Welcome to the New York City Council Committee on Small Business.

Please place your phone on Sign It or Vibrate Mode anytime during this hearing.

Do not approach the days.

Chair, we are ready to begin.

This hearing is now called to order.

Good afternoon, everyone.

I am Councilmember Chanel Thomas Henry, Chair of the Committee on Small Business.

Thank you for joining today's small business hearing.

I've been traveling across the city speaking with business owners, and top of mind is outdated regulations and daily disruptions.

With the goal of meeting entrepreneurs where they are and being responsive to their unique challenges, this hearing will focus on discussing three bills and a resolution that do just that.

These include Introduction 799 from Council Member Salam, Introduction 910 from Councilmember Stevens, a preconsidered introduction from Councilmember Zwang, and Resolution 328 from Councilmember Salaam as well.

I'd like to thank my council colleagues, representatives from the administration, and members of the public for being here, as well as members of the public participating remotely.

Small businesses are the lifeline of New York City.

They provide us with the diversity of experiences and are the first line of defense for preserving and celebrating the unique cultures that make us great.

Beyond this, they help shore up our middle class by acting as engines of economic mobility, especially for our immigrant and minority communities who don't always find the means to enter and stay in the traditional workforce.

Despite this, the city has fallen short in its support of our beloved small businesses.

Becoming an entrepreneur isn't easy.

Many would-be business owners never end up starting because they must navigate so much of the regulatory process alone.

Coupled by the lack of access to capital to start their business and pay the workforce to put it into operation and grow.

This journey becomes a daunting experience, and roughly 20% fail in the first year.

Even when businesses finally get off the ground, many of them continue to operate on razor-thin margins.

Is exists to help support these pioneers.

They help entrepreneurs navigate and adhere to regulations and provide them with funding streams when needed.

In today's hearing, we will discuss introduction 799 and a pre-considered introduction in resolution 328.

Similarly, Councilmember Salaam's resolution 328 would ask the state of New York to provide a tax credit to business owners impacted by infrastructure construction.

Councilmember Salaam's legislative measures would help ensure that we are not letting our businesses suffer in silence from actions taken by the city.

Introduction 910 from Councilmember Stevens would repeal the requirement in local law 75 that all businesses must have 70% see-through security grills by July 1st.

Instead, they would only be required to buy that specific security grill when obtaining a replacement.

The Department of Buildings would also be required to perform outreach in the following six months to educate business owners of this requirement.

This bill will also help ensure small businesses are not unfairly penalized by a law that they were never informed about in time.

Councilmember Zwang is here today and will like to speak to us about her preconsidered introduction.

This bill would require the mayor to establish a program to coordinate inspections and plan reviews among city agencies to speed up the time it takes to open a business.

Councilmember Zwang's bill would help make things a little bit easier for entrepreneurs.

The legislation that we hear today will not address all the systematic issues burdening our small businesses.

But it is a start and it is timely.

I look forward to hearing testimony from the Department of Small Business Services and hearing their positions on these bills.

I similarly look forward to hearing from small businesses and advocates on today's legislation.

I want to thank Tyler Walls and Rebecca Barillia from Central Staff for putting their putting the work together for this hearing, as well as my own staff, Franklin Richards, Sierra Smith, and Derek Slaughter, and anyone working in the background to help this make this hearing possible.

I will now turn it over to Councilmember Salam to provide an opening statement on his bill.

Thank you, Chair Thomas Henry.

And thank you to the members of this committee for for hearing these two items today, including all the other bills as well.

My bills um introduction 799 establishes a roadway construction small business support fund and resolution 328.

The companion measure calls on the state legislature to pass and the governor to sign legislation providing a tax credit to businesses negatively affected by infrastructure construction.

I represent Central Harlem, a district built on the backs of small business owners, the barber who has cut three generations of hair on the same block, the restaurant where neighbors gather, the bodega that knows your name.

These businesses are not just not just commerce, they are the fabric of our communities.

But here's the hard truth.

When the city tears up a street to repair infrastructure beneath it, and we know that that work is necessary to keep our city running.

The small businesses on that block often pay the price.

Foot traffic disappears, deliveries cannot get through.

Customers walk to the next avenue, and as projects last 30, 60, 90 days, and sometimes more, this can be the difference between a business that survives and one that closes its gates or doors for good.

That's not fair.

A small business owner did not choose that construction.

They should not bear the financial burden of work that benefits the entire city.

Introduction 799 establishes a support fund, loans, grants, and services administered through small business services to keep and help these businesses adapt and stay open.

Other places have already acted.

We see that in Minnesota studies have already shown this to be successful.

New Jersey built a program for Route 80.

Florida moved on disruption assistance.

New York should lead and not follow.

Small businesses are the backbone of our economy.

When the city asks them to endure disruption for the common good, the city should also stand with them.

Thank you, and I look forward to your testimony.

Thank you.

In addition to being joined by Councilmember Salam and Councilmember Swang Zwang, apologies.

We are joined online by Councilmember Santa Swoso.

I will now turn it over to Councilmember Zwang for opening remarks.

Thank you, Chair.

And I know you are always a fighter for our small business owners, and thank you for holding this hearing about my preconceived um bill.

Opening a small business in New York City is one of the most time-consuming and complex complex process in the country.

People must navigate approvals from multiple city agencies without almost no support.

A stand DOB plan review almost take 4 to 12 weeks, and then FDNY, DEP, Department of Health, and other city agencies, with a total permitting timeline often stretched to six months or more.

That's why on Thursday I'm introducing the Rate Tape Relief Act.

It created a new interagency inspection coordination program, modeled after proven initiative that cut the time to open a new business in New York City by up to two to three months.

Two to three months, the Adam and the administration lets this program secretly fade out.

This legislation will re-establish this program that streamlined the multi-agency permit process, restaurant and the child care program will be prioritized, and we would expand it to additional business later.

Full history data, this program was successful before, and because reduce restaurant permitting time from six months to four months is citywide.

Help over 1500 businesses open two to three months faster so business owners can put more money in their own pocket, and our city actually generates 9 million dollars more tax revenue by speed up restaurant openings.

This new legislation will be permanent and mandated to help small business owners.

It will reduce the time needed to open new business with interagency coordination of inspections so the small business owners don't have to run running around between city agencies.

Second, allowing city administration to prioritize independent independent help small business owners, especially first-time business owners.

Require an online application portal.

It will be easier and the user-friendly.

Make a yearly report started starting December 34, 2027.

So we will have new data to track this program and see the progress for the small business owners.

New York City is the home to one of the most diverse small small business communities in the world.

Loan permitting timeline hits those business owners hardest.

They often lack the legal and financial resources to deal with months of delay.

The Rate Tape Relief Act is an investment in the economic of every neighborhood in your city.

So I'm asking everyone, please to support this bill.

Thank you.

Thank you, Councilmember.

Councilmember Stevens could not join us today, however, I will read her statement for the record.

Good afternoon, and thank you, Chair Chanel Thomas Henry, for your leadership on the committee on small business and for hearing intro 9-10 today.

I also want to thank our speaker for recognizing the importance of this issue and supporting efforts to ensure that our small businesses are not burdened by unnecessary cost.

Small businesses are the backbone of our neighborhoods.

They create jobs, provide essential services, and contribute to the character and economic vitality of our communities.

Yet every day they face increasing challenges from rising rents and inflation to higher operating costs and workforce pressures.

That is why intro 910 is so important.

This legislation takes a common sense approach to the implementation of local law 75 of 2009 by ensuring that business owners are only required to comply with updating, updated security grill standards when replacing their existing security grills.

If a security grill is functioning properly and continues to serve its purpose, a business should not be forced to spend thousands of dollars replacing it before it is necessary.

We have heard directly from business owners across the city who are concerned about the financial burden this mandate would create.

For some establishments, replacement costs could exceed $10,000.

That is money that could otherwise be invested in hiring employees, purchasing inventory, improving storefronts, or expanding operations.

This bill does not compromise safety at any cost, as businesses will still be required to comply with updated standards when replacement becomes necessary.

What this legislation does is provide flexibility and fairness while recognizing the economic realities facing our local entrepreneurs.

Intro 910 also strengthens accountability by requiring reporting on implementation and impacts.

This ensures the council can monitor how the law affects small businesses, identify challenges, and make future policy decisions based on real world data rather than assumptions.

I am proud that this legislation has earned the support of 34 council members because this issue impacts businesses in every borough and every district.

It is a practical solution that balances public safety, economic stability, and government accountability.

Today, we have an opportunity to support them by removing an unnecessary financial burden while maintaining the safety standards our city expects.

Thank you.

I will now turn it over to committee counsel to administer the oath before we hear from the mayoral administration.

Thank you, Chair.

We will now hear testimony from the administration.

Before we begin, I will administer the affirmation.

Do you affirm to tell the truth, the whole truth, and nothing but the truth before this committee and to respond honestly to council member questions?

I do.

Thank you.

You may begin when ready.

Good afternoon.

Uh good afternoon, Chair Thomas Henry, members of the City Council Committee on Small Business.

My name is Kenny Minaya, and I am the commissioner of the New York City Department of Small Business Services.

I am pleased to join today's hearing with Assistant Commissioner Reynaldo Hilton from the Department of Buildings and my colleague Director of Intergovernmental Affairs, Jason Adgeley as well from SBS.

The mission of SBS is to deliver economic security for all New Yorkers by connecting them to good jobs, supporting small businesses, and investing in our neighborhoods.

There are over a hundred and twenty-six thousand storefronts in New York City, and we are committed to ensuring small business owners are empowered to operate and grow their businesses as seamlessly as possible.

Our support includes affordable capital connections, compliance consultations, and reform advocacy to make it easier to do business in New York City.

Just two weeks ago at our small business expo, small business month expo, we brought nearly 2,000 New Yorkers under one roof to connect with city agencies, industry experts, and resource providers.

Since becoming commissioner, I have made it a priority to visit as many business corridors as possible and hear directly from small business owners, advocates, and community leaders about the evolving challenges facing our city and the urgent reforms needed to help small businesses across the five boroughs thrive.

The three bills and the resolution attached to this hearing seek to address some of these business challenges.

Intro 910 would repeal the requirement that all security grills installed at businesses located in Group B or M buildings to have 70% visibility by July 1st, 2026, or be subject to a fine.

SBS fully supports the bill and believes it can go further by prioritizing business choice.

And we look forward to working with the council to craft a version that provides business owners with the choice to install security grills with the visibility features that best meet their needs.

Intro 799 would require SBS to establish a program offering loans and grants, among other supports, to help small businesses offset expenses incur due to city construction projects.

SBS supports the intent of the bill, but we have some operational concerns with its implementation.

However, FSBS will continue to facilitate connections to affordable capital through our seven business solutions centers, the NYC Future Fund and the NYC Funds Finder Marketplace.

Turning my attention to pre-consider intro.

The pre-considered intro required the mayor to establish a program that would plan and coordinate agency inspections for businesses to reduce the time needed to open.

The administration supports the intent of the bill and does not want to inadvertently duplicate existing city services.

As part of Executive Order 11, we conducted a time to open analysis to better understand the status quo and generate insights for reform.

SBS delivered those recommendations to the deputy mayor for economic justice earlier this year.

The administration has also demonstrated its commitment to cutting red tape through the expansion of SBS's NYC Best Team, which gets small businesses to opening day by liaising and advocating with regulatory agencies on behalf of small businesses.

Since the start of the administration, our NYC best team has helped businesses save over six million dollars.

As such, we are supportive of the goals and Council Member Zhuang's bill, and we look forward to partnering with the council to advance reforms as part of Executive Order 11.

Thank you so much for the opportunity to testify about SBS's work and how we can make it easier to start our operate and grow a small business in New York City.

I look forward to our continued power ship partnership to empower small businesses, and I welcome your questions.

Thank you.

Okay.

I want to mention that we've been also joined by council members Maloney and Moreno.

Do we have a representative from DOB?

Are you representing DOB?

Okay.

First questions for you.

Introduction 910.

So under local law 75 of 2009, the Department of Buildings was required to develop an outreach program beginning in 2010.

Can you explain what the outreach looked like?

Thank you, Chair.

So DOB believes, first of all, that there are always opportunities to improve our outreach, but outreach in general.

The more outreach to the affected parties, the better, of course.

There was some initial outreach conducted when the law was first enacted, and a few years uh later, after that.

It's first worth noting that the law had a long runway, uh, 15 years to be exact, uh, from the uh time it was passed uh to the uh effective date of the law, which is coming up July 1st.

However, all subject buildings in group B and M mercantile occupancies are uh are not required to comply with seventh person visibility until July 1st of 2026, and uh business may have been shutdown for example, and opened on the new ownership uh during the interim period, which could be why some owners may not have been uh so much aware.

Um so that is a little caveat to your question there.

But anyway, leading up to July 1st, 2026, uh the compliance date by which existing groups must be replaced.

The department has been ramping up its outreach efforts and has used various avenues uh for getting the word out to owners.

Uh so these in these include the issuance of uh a service notice, a construction advisory, and other media communications.

Uh we shared information via social media platforms, we partner with our SBS colleagues uh in sharing information.

We have attended myself included business improvement district meetings in various boroughs to share information regarding the law and to respond to questions from business owners.

And of course, uh on the internal side, we've also been answering a lot of custom service increases increase, sorry, through our web portals.

That's been the extent of our outreach.

So nothing prior to the beginning of this year.

I believe that's uh that is correct, but I think it was late last year.

Nothing prior in 15 years.

Oh, well, so in 15 years, so there was I did mention before that at the very passage of the bill there was uh outreach done very very early, but that was 15 years.

I know I was alive at that time, but I don't rem I don't know the extent of the uh of the outreach, but I do recall, I know for a fact that the department of buildings had published a service notice advising uh uh folks, but I'm not sure how much outreach was apart from that was done.

Based on our records, there was no outreach in 20 from 2010 to 2025.

Um so just assuming something was published in 2010, there was no additional outreach made until the end of 2025 for a law going into effect this year.

I am not able to affirmatively say.

So what did the outreach beginning at the end of 2025 look like?

How many businesses did you reach out to?

You mentioned social media and assistance from SBS.

Um but what did that look like?

So we we did the service notice which goes on our website and and for and uh folks are able to but who are signed up for buildings news and information gets to see that.

We have how many people are signed up?

Uh we I don't know that number that is, but that is uh a way for people to get information.

We've also issued a construction advisory uh which basically outlines what you would need to do with security grills, what's required, the permitting requirements, and so forth.

Um, and of course, we mentioned uh the uh the um social media platforms, but I most importantly though, uh chair, is that we have worked with SBS in giving information and and uh disseminating it to to those businesses.

We do not have a list of businesses.

Department buildings do not do that, right?

So we are we're dependent upon uh those kind of connections uh to disseminate information.

Uh especially we don't know if there's a security grill at a particular business.

We don't know who those people are, so individual outreach to those folks are not uh possible so much with the department buildings.

We can just put generation generally out there.

Chair, I can supplement um assistant commissioner Hilton's answer somewhat.

Um so we we at SBS uh in partnership with DOB were able to reach 60,000 business owners through our our newsletter uh mailing list.

Um in addition to that, um my first week on the job, uh SBS convened um uh a regular monthly bid call, um, and this was a topic of presentation um to to our our bids, which also that call was also uh joined by members of the small business advisory commission.

Um on top of that, um chairs.

You know, uh I love walking the corridor.

So uh any any of our corridor walks, we've made sure to to get information out to business owners um about this this law and its implications that they're aware as well.

I have no doubt because it wasn't until this year that business owners kind of sounded uh sounded the alarm that this was coming to into effect.

So thank you for that.

Um back to DOB though, so if a business isn't signed up to receive construction news, they would not have gotten notified from the Department of Buildings about the gates, correct?

I mentioned the other methods such as or if they didn't look at social media.

Right or website information, construction advisories and so on.

I uh the department of buildings uh do not deal directly with businesses except for when they do filings with us.

So a new business, any new businesses that opened up between 2010 and 2025 would have had to seek a permit from the Department of Buildings to do so, correct?

Between 2011 okay, 2011 and 2020.

And 2020.

At that time were any of those businesses made aware that if their security gates were not up to code that they would need to be brought up to code by July 1st of this year?

Um they would be required if they if their business, if they're filing for a uh security, you know, filing construction plans that should involve a security grill, they would uh be notified during plan examination that that grill would have to be up to code.

Let's take a fence.

I open a business at the end of the beginning of 2025.

Yes.

As part of my permit process, is there anything that's said or DOB inspector that is going to tell me?

And we meet at my business.

We meet at my business, it's fully, it has a beautiful mural on it.

So there's no visibility at all.

Is someone from DOB going to tell me at that point in time, hey, you're gonna have to replace this in the next year and a half.

Well, we don't know, we don't see the pictures or we don't have a picture of what their buildings look like.

They have to we're looking at it.

We're looking at the gate.

It has a beautiful mural.

I see, but in during this is plan examination, so they're presenting a set of plans to the department as to what they need to do.

If it involves a secure to grill, uh it would be told at that time that security group would have to come into compliance during plan examination.

So when we pass a law like this in the council, and it's it was stated that DOB would do the outreach.

Where's the disconnect in terms of when the outreach starts?

Is there immediate coordination with SBS to do that outreach?

Like you guys can tag team one another.

Does DOB assume SBS would do that outreach?

I'm just trying to figure out why in 15 years none of our businesses except if they signed up for bulletins were alerted that the grills needed to be updated.

Yes, Chair.

So as I said before, I think there was some missed opportunities uh by the department, maybe uh by both uh agencies uh to coordinate that.

But as I said, there was 15-year long uh runway there.

There's a there was a lot of uh of legislations that came through during the time that department buildings would have to prepare for, and I think the long compliance period may have uh you know displaced some of that um uh awareness on the department side.

So we apologize for that if that's if that was the case, but yes.

Okay.

I'm going to hold on questions for a moment and let some of my colleagues um ask their questions.

I'll turn it over to Council Member Salah.

Thank you for your testimony.

Uh this is in relation to introduction 799.

Um this bill sets per business caps of $50,000 for loans and 15 50,000 dollars for loans and $15,000 for grants per storefront per year.

Would it strengthen the program to pair those with an annual aggregate ceiling that the agency could adjust each fiscal year based on demonstrated demand and available appropriation so that the program scales responsibly with the needs rather than committing the city to an open-ended obligation?

And does small business services see administration administrative value in the structure in that structure that and would the aggregate ceiling be best set by the agency rule or through the annual budget appropriation itself?

Thank you for the question, Councilmember.

I I think any time um we provide flexibility um to be able to match the resource to the need um and and and just and try to get the biggest bang for our book um on that resource.

I think that is always welcome.

So let's say that an annual ceiling for the program that is appropriated each year is built into this legislation.

The per business grant and loan is a maximum of $50,000 for loans and 15,000 for grants functioning as a permanent upper limit per business that can never be exceeded, no matter how large the program annually appropriation grows.

In a year where the aggregate ceiling is lower, however, the per business maximum could be scaled down proportionately so that limited funds reach more businesses rather than being exhausted by a few.

Does the agency see this fiscal structure as workable to administer?

I think that that uh speaks to kind of some of the operational um concerns we have with the bill.

I mean, historically, when we've um implemented products like this, um whether it's NYC future fund, uh, S NYC loan fund, uh, we do those in partnership um with a CDFI community development financial institution.

Um, so the more uh um requirements uh that we have that the more challenging it becomes, understood.

And for the loan component, would it help the programs long-term sustainability to build in basic underwriting standards such as credit worthiness credit worthiness or repayment capacity criteria so that loans support businesses positioned to recover and repay the fund so that they can keep so that it can keep revolving?

And what criteria will the agency recommend so that the city extends credit responsibility without screening out the businesses that in fact need it the most?

I think there's two responses there.

I think as with any other loan product, we want to make sure that we have strong underwriting standards in place to make sure that we we are um assessing the the ability of the business to pay back the loans, but also um at SBS, one of the things that that we try to focus on at our business solution centers is also making sure businesses are ready to apply for loans, helping them get credit credit ready, and we we certainly would continue to do that work in service of of this bill and this product and any other um future products.

And this bill requires a determination no later than 14 days before construction begins and disbursements within 14 days of approval to ensure that promise holds at scale.

What systems or staffing would help the agency guarantee those timelines even in a year with many concurrent projects and what speed built into the foundation of this program rather than we want speed built into the foundation of the program rather than add it later, really.

And I think that's that that harkens back to to one of the the operational concerns we have with the bill is the the timelines um being being uh prescribed.

Um we would partner with somebody uh CDFI to help uh distribute these funds.

Um, we certainly wouldn't want to prescribe them in their review as well.

Gotcha.

This bill asks the agency with writing eligibility guidelines to keep the program targeted at and defensible, would it help to anchor eligibility in objective market markers such as documented construction duration, demonstrated access limitations, and approximate approximity and proximity rather to the work zone so determinations are consistent and businesses know exactly what qualifies?

And what objective criteria would the agency find most workable to administrator and how would it distinguish losses attributable to city construction from broader economic conditions?

Absolutely, council member, I think um, you know, there's always a trade-off, right?

So in the bill as written, um, you know, there's a spirit of speed of trying to get the resources to the businesses that quickly as quickly as possible in order to achieve that objective criteria is critical.

Um, you don't want to have to do uh a a de novo review for every single application, uh uh unique review.

You want everything to be as standardized as possible.

So we would certainly support uh a change in the uh along those lines.

Thank you, Chair.

Thank you.

Thank you.

Councilmember Moreno.

Thank you very much uh Chair and uh thank you on a personal note for coming out to Staten Island to visit some of the small businesses in my district.

Appreciate your leadership of this committee and taking the time to actually hear from small business owners on the ground.

Meant a great deal to them.

Uh Commissioner, thank you for your testimony as well.

And uh, I'd love to show you around some of the small businesses in my district as well.

Uh you mentioned that SBS recently completed a time to open analysis and uh delivered recommendations to the deputy mayor.

I'd love to start there.

What is the current average amount of time it takes to open a small business in New York City?

So in in our analysis, what we found is that it varies.

Uh, Councilmember, as you can imagine, um, on one end of the spectrum, uh, you may have a business that just needs a single license to operate, um, and that'll have its own um more shortened timeline, and then on the other end of the spectrum, we're talking about a gut rebuild renovation and those construction timelines, however long that takes.

So it varies.

There is no one one marker there.

I guess what I'm trying to get at is before SBS undertook these reforms, what was the difference?

How many days have actually been eliminated from the process as a result of the administration's efforts?

Understanding that it varies.

Okay, and just a point of clarification there, council member, um, proposed reforms are still forthcoming according to executive order 11.

Uh those are due in July.

So we're still working through this issue, listening to small business owners about what their pain points are.

Got it.

Um, and and planning accordingly.

You also referenced the uh NYC best team, and uh you mentioned it's helped save businesses more than six million dollars.

Uh, that's a significant figure.

And how exactly is that number calculated?

Is it actual dollars saved, fees avoided, consultant costs avoided, or a projected value of time saved?

And how many businesses generated that six million dollars in savings?

Sure.

So it's a fines avoided number.

Um so I actually had the privilege to sit in on one of these compliance educations where our dedicated staff member of SBS walked around the business, met the business owner at the location, and pointed out um items that that needed to be corrected, and each of those items, as we know, if there's a summons issue in a real life situation, has a dollar amount allocated to it, and that's how we calculated that number.

Um, as far as the number of businesses served, um, let me let me see if we have that for you.

Or basically the average benefit per business, either one.

I just have that number in the aggregate, but I'll ask the team to see if we can pull that up.

Got it.

Thank you.

Um, one thing I do worry about is that government often measures activity rather than outcomes.

So let me ask a bit of a different question.

For every hundred entrepreneurs who begin the process of opening a business in New York City, how many actually make it to opening day?

Do we track that figure?

Do we know how many people just simply give up?

What I can speak to is that uh just in five months um this calendar year, we've helped 58 businesses open their doors through the NYC Best Program.

Um just last week at the Small Business Month Expo, we we heard from a business owner who just opened a cafe in Harmland, uh same time tomorrow cafe, talking about the frustration um of having to try to navigate the process on our own, and then when she approached NYC best, uh being able to cut down opening time and an opening two months early.

Uh my last question on the construction bill, and I guess this would apply to DOB potentially as well.

I represent Staten Island and my constituents certainly aren't opposed to infrastructure projects, they're opposed to projects that appear poorly coordinated, poorly communicated, and endlessly delayed.

And we're going through this right now in my district.

Has SBS ever calculated the economic impact on small businesses when a government construction project exceeds its original completion date?

Do we know how much revenue is lost when construction drags on for months or years beyond schedule?

And if we don't know that number, how can we determine what level of assistance is appropriate?

So thank you for the question there, Councilmember.

Um so we we don't know that number, and and part of the reason why we don't have that number is that it would require business owners to share revenue data with with SBS or any government entity before or after the project, but I can speak to anecdotal uh reports of frustrations that I've heard and anecdotal reports um from business owners of um of decreased productivity as a result of uh of a construction uh uh project taking place in front of their business.

Thank you very much.

Thank you, Councilmember.

And just one more point.

Uh I will see you in Stan Island next week.

Uh looking forward to it.

Likewise.

I'll go showing off because I went to Staten Island.

Trying to keep up with the chair.

No, thank you, Councilmember Morano.

Um, and I had a lovely time in your district.

Can't wait to get back.

Um at this point, but while we do have a quorum, I do want to turn it over to Councilmember Santos Woso who's online.

Good afternoon.

Can you hear me?

Yes, we can.

Thank you, Chair.

Um, and I just have one or I have one question for Commissioner Manaya and one question for Deputy Commissioner Hilton.

Um, so Commissioner Manaya, you were talking about how you have some you know reservations about the legislation and wanted uh I'm sorry, referring to intro 910 um and wanted to further discuss the potential of choice.

Can you talk more about what you mean by that?

Absolutely, thank you for the question, council member.

Um, so as I mentioned, uh I've I've tried to do a lot of business engagement in my my first few weeks at the job, and um one of the consistent points I've been hearing from um business owners as it relates to the security security grill requirement is uh separate from the cost, uh, is why this what what's being proposed in the law is not what works for me in my in my borough and my neighborhood.

So I've I've brought back that feedback from business owner, and I think we should try to find a way to give them choice.

Understood.

And when by that you mean choice to even install a great a great that would be um compliant with the law to begin with.

Correct.

Um choice to choose the visibility requirements that best meet their needs.

Okay, and then turning to assistant commissioner Hilton.

Um, you know, given the the issues with outreach over the last 15 years since the original underlying law was passed, and I understand the long runway and the challenges there.

Uh how how exactly, you know, do would you want to see this legislation strengthened in some way in order to um provide you know DOB with more consistent instructions as to how to conduct outreach for these new businesses?

Do you feel that it's written as such now, that it gives you sufficient opportunity to comply?

What what how can we prevent this from happening again essentially?

Understanding of course that there isn't the the runway um that was provided for before.

Thank you, Councilmember.

Um, that's a loaded one, uh, you know, but I just want to say that the the department of buildings mission itself is is regulatory, right?

We're we're we are in a business typically engaging with folks who come and come to us uh for construction alteration uh needs, right?

So they're they're filing something with us, and and so um that's has been our focus uh a lot, but yes, we recognize the need, and I'm just amazed by the chair's question really earlier, where we could have um done something even more uh taken the initiative to do certain things um as they come as folks follow with us.

We could have asked those questions ahead of time and given some more information.

So uh yeah, we'll I'll take that back uh to our folks and and absolutely we will make some adjustments uh in the plan exam phase where folks will be able to ask certain questions uh about these uh pending uh regulations for you know during the examination phase, even if it's not brought to light uh initially that I have a secured grill or it's not made clear, we should be kind of um yeah, prompting prompting those uh those those questions.

Yeah.

This this one's important to me because I actually owned a business with a security grade between 2019 and 2025, and I I worked in the council even for some of those years, and I actually still didn't know about the underlying law, and so I just think we don't want small business owners to be in that situation again.

So um, you know, whatever way if if there are ways that you feel that the legislation needs to be clearer about DOB's outreach requirements or if there are um you know uh new plans for DOB to to do outreach to the businesses that would be subject to this, then I think uh the council would like to hear it.

But I thank you both for your time and thank you, Chair again for letting me um uh give these questions via Zoom.

No, thank you for joining us.

I do want to mention we've been joined by council member Brooks Powers, and I will now time turn it over to her for questions.

Thank you, Madam Chair, and thank you for your testimony, Commissioner.

Just two quick questions.

First, um many small businesses, particularly in Southeast Queens struggle when major roadway, sewer and infrastructure projects disrupt access to the storefronts for months at a time.

Can SBS provide examples examples of how it currently supports businesses impacted by construction and where in the budget is being prioritized?

Sure, council member.

Um there are a couple of interventions um that we deploy.

I think uh first and foremost, uh information is power.

So we we make sure that small business owners are aware of what's happening with the construction project and and try to get that information to them through our partnerships with uh city agencies engaged in infrastructure improvements.

We also bring back the feedback from small business owners to the city agencies about the impacts.

Um I think another intervention we deploy is that we we provide access to resources for small business owners.

Um so the first that comes to mind is uh through our small business solutions centers connecting them to to services such as webinars on how to adjust their marketing um so that so that they're making uh their customer base aware of the impact.

Um we also connect them through the NYC funds finder through affordable loans and grants um for whatever their business need may be.

Um and we have the staff at the small business solutions centers to help them get loan ready um and and and just one point that I missed earlier in our advocacy with uh city agencies, um, you know, one of the points that we hear consistently from small business owners is if you're gonna be disruptive, like at least help me with signage so that people know that I'm still here.

Um and that's something that we've seen uh our advocacy has been successful on that front in the past as well.

Thank you for that.

And what in particular, I like the signage piece.

Um definitely think it's important to create some semblance of a fund, like especially if it's tied to like a ULERP or some level of of development.

Having the the developers invest in like a fund for things that may come up and disrupt things, whether it's rodent mitigation or um they may be out of business for one day because something got disrupted in terms of water or something like that.

We've seen those in downtown far Rockaway in particular, so um, over the course of some of the construction has happened uh along the commercial corridor, and I welcome you to come visit the district.

Um you are my fourth commissioner since being elected.

Um, all of the commissioners in the past have come to the district, and we welcome you.

My last question for you is one of the most common concerns I hear from small business owners is the length of time it takes to navigate inspections and improvals before opening their doors.

Which agencies and inspections create the most s significant delays today, and how much time could a coordinated inspection program realistically save for new businesses?

Thank you for that question, council member.

Um what we find in in our in our conversations with small business owners is that there isn't just one agency or one type of inspection um that that gums up the works, so to speak, that it's more a question of filling the information gap.

Oftentimes um small business owners don't even know that they need to go to a particular agency for a particular item, you know, and and that's precisely the gap that NYC best tries to fill.

We try to ensure that business owners are aware of the various city agencies they need to connect with in order to open quickly, and we help them line up the inspections, so to speak, by making sure their paperwork is in order, um, and and understanding what they're trying, the vision they're trying to put forth so that we can issue spot and identify the right agencies for them.

And I know that was my last question, but this is my last last question.

The JFK redevelopment program.

Um I'm not sure if you're familiar, it's a multi-billion dollar infrastructure program happening at JFK, it's been happening for about the last seven, eight years now, and there is a joint set of certification process, um, the reciprocal process.

If you want to get certified with the port, you can get certified with the state and the city.

The city has probably the fastest process out of the three.

But I wanted to know: has there been any coordination with the port authority to be able to look to to better inform a more efficient streamlined process?

Because I do still hear from some of the businesses about it being um very time-consuming and overwhelming for them.

So I I just wanted to understand if there's anything that you have been done.

Obviously, you're newer, but if there's anyone in the agency that's focused on that, I would like to know that.

We certainly have some preliminary conversations, but we'll have to uh I want to connect with you to understand what the issues are a little bit more.

I welcome that.

Thank you, and thank you, Chair.

Thank you.

I'll now turn it over to Councilmember Swong for questions.

Thank you, Chair.

And also I want to thank commissioner to support my bill.

Thank you so much.

And also, I want to mention our district also needs some love.

If you have time, please come to my district also.

I would love to.

Thank you.

I have two business core.

Why is Ace Avenue in Sansei Park?

A lot of business actually down 30 to 40 percent because of the struggle, immigration issue and also tariff issue.

And uh also I have uh actually one of my business owner just text me.

Uh he have a question.

So for the intro 90 about the grill, the gate issue.

If they are in the process opening a business right now, probably open, um hopefully they said the open uh the end of this month.

We do they still need to apply the law.

Thank you.

Thank you for that question.

Uh, just like that, they actually in the process, they don't know what to do now right now.

Correct.

So I understand.

So the department of buildings uh has um I anticipated that question.

Um as you know, the law requiring the 70% visibility currently as as it is, uh, does not take effect until July 1st of 20 2026.

So with this legislation in place, the department of buildings has um effectively uh decided to um uh withhold enforcement or stand down on any enforcement until we see what this legislation has as passed is and it apply that this legislation uh the enforcement piece would be what the risk resulting legislation looks like.

So we we are not enforcing uh we don't plan on enforcing the current uh law.

Can we say that's some grace periods?

There is the grace period is until we know what this new law says.

Okay.

Uh and and and the effective date of this law and what and what we don't want to do double, we don't want to, for example, enforce a law that becomes nullified with this piece of legislation.

Okay, great.

Thank you so much.

Very helpful.

Thank you.

You're welcome.

Thank you, Councilmember.

I'll now turn it over to Councilmember Maloney.

Thank you so much, Chair.

And I want to thank you, Commissioner Mania, for your testimony and also for visiting my district early on in your term.

Um and congratulations on paternity week.

Thank you.

Um I had a follow-up question to intro 910.

Do you have information on compliance by borough or types of businesses that are still non-compliant with the 70% visibility?

I think that's the question for DOB.

Thank you, Councilmember.

I thought I I thought it was off scotch free.

But uh sorry.

But then I'm coming and I'm coming back to the commissioner.

Go ahead.

But the the answer to that is uh I do not we do not have information yet because the Department of Buildings has not yet uh began enforcement uh except for during the plan examination for those businesses who may have um during their plan examination from 2011 to 2025 as uh chair uh had kind of um brought up.

Uh we would not we have not we have we have no knowledge really of any non-compliant um growth because we have we were withholding enforcement until the effective date of the law.

Do you have a a loose set of assumptions on where businesses have already upgraded it?

And you know, I'm in I represent Manhattan.

I think the majority of the businesses in my district have uh adopted uh the legislation, but just trying to try to get a loose back of the napkin sense of which businesses are going to be the most impacted by this requirement.

Right, but we uh yes, so I stand by my early answer that the Department of Buildings does not have any information on that.

We did not gather any surveys or doing information on that.

Okay, thank you.

And I want to switch gears to uh the intro T 2026 on uh cutting red tape for specifically for opening new businesses and reducing time to open new businesses.

I applaud the work of executive order 11, which seems to be more focused on fines, fees, and and regulations that are impacting existing businesses.

Understanding that the results are going to be coming out soon in July.

Do we have a sense of how many of the recommendations are focused on accelerating opening new businesses, or is it really back on that that fines and fees piece?

I think uh preliminarily there's a there's a mix of proposals addressing both uh reduction of fines and fees and some some outdated requirements as well that there are impediments to opening.

Great.

And um with expanding MYC best team, it's great to see that you've helped businesses save over six million.

Uh does that also include staffing increases, budget increases?

What can we what can we expect from expanding that program?

This is part of the preliminary budget there there is an expansion of NYC best of uh 30 staff lines, uh, believe four million dollars in the prelim plan.

Um, and we we want to serve more businesses and provide more in-depth services as well.

Agreed.

That's great to hear.

Um, and then how will the mom and pop czar play into these recommendations and what specifically is the role of the mom and pop czar?

We we I am in close uh close consultation with the mom and pop star deal.

I will say we we both uh report directly to Deputy Mayor Sue, uh Deputy Mayor for Economic Justice, um, and we are both laser focused on making it easier to open a business in New York and to operate once you are open.

Um so mom and pop's ours is reviewing recommendations, proposing some of our own that are informed by the interactions she's having with small business owners as well.

Great.

I'm looking forward to seeing the recommendations, um, and uh echoing Council Member Morano's point around the baseline metrics of where we are and what uh you know what improvement looks like as well as common issues that that businesses have and the completion rate from people who start this process and and actually get to the success line.

Thank you very much.

Thank you, Councilmember.

DOB, I'm gonna give you a break for a minute.

Just a minute.

Commissioner Manaya.

A couple of questions um around Councilmember Salam's bill.

Um, if a business begins struggling and believes it is connected to roadway construction, are there any current resources that the city can connect them with?

Um the resources that we have available um to small businesses are are the the loans and application uh the loans and grant programs that we connect them through through the NYC funds finder, those are generally applicable to address any business need, including the one you just mentioned.

I'm curious, um, as a lot of businesses that I actually visited while um in council member in Carnassion's district along Second Avenue Subway have been experiencing challenges and they did um the MTA or their contractors did do the signage and the thing, but it's so crazy down there that you as a consumer just assume that entire stretch is closed, like there's no way you would reasonably assume that those businesses are open even with signage.

So I'm curious, has any have any of those businesses in particular along the second avenue subway route reached out for assistance?

We've certainly connected with those businesses along the second avenue uh corridor you just mentioned.

Um I am unable to provide specifics, but I know that we've done outreach in the area.

I can speak to that.

Okay, we'll definitely like to follow up, and we have reached out to the MTA just to um get additional because honestly speaking, those businesses nine times out of ten, it's gonna be hard for them to survive during that construction.

Oh no, I didn't thought you were gonna say.

No, I was gonna say that in addition to the supports that we offer uh on the loan and grant fund, um, we also offer marketing support to make sure that businesses are able to to communicate to their customers that they're still in business and and make them aware of the situation.

Okay.

Um we found an example.

I'm not sure if you're familiar with the Route 80 in New Jersey.

Um there was a sinkhole under construction.

The New Jersey Economic Development Authority made a grant program for small businesses and nonprofits that were affected by the construction.

The program specifically targeted businesses with up to 50 employees that sustained a negative financial impact of a thousand dollars due to the sinkhole, and qualifying businesses could then receive anywhere from a thousand to fifteen thousand.

Um have you guys looked into that program or where that program and any similar programs where businesses provided were provided with assistance?

I am not familiar with that program, no.

DOB.

If a company when a company has a plan examination, what does that look like?

Um Chair, so the company itself does not come to us, the meaning of business, right?

The plan examinations are done between a what we call the registered design design professional, which is an architect, registered architect or a professional engineer who comes to us with a set of plans uh about the construction and what they're their um they need, right?

So a lot of times now we do a lot of this stuff online, and there is a back and forth online, but there's also uh an opportunity for them to come in uh for with appointments and and so it's them presenting a set of plans to the department that assigns it to uh to a plan examiner that planning examiner reviews a set of plans to make sure it meets codes and zoning requirements, and then they may return such uh uh plans back to them if it's if it's not uh fully up to code or up to specs, whatever that's needed to clarify the set of plans, and is called uh with that is called issuing objections and then that those uh the plan the RDP would then satisfy or answer the objections and set it back and it's uh back and forth hopefully not too many back and forth um before that that plan is reviewed.

So with those objections or not exempt so I guess what I'm getting at is does that examiner come out and go over with the architect and or business owner anything beyond the scope of that particular plan i.e.

security grill.

And that's my point before chair that they m the the plan examiner is looking at what's what they're presenting um how it um what they present on the plan.

So for example the plans does not show a security grill um these are not pictures these are actually drawings uh and so if that's not a part of saying this is the security grill that's going to be installed or replaced the plan examiner uh does not um see that and and my point to you before where you're saying that's an opportunity there to ask a question that's what we'll take back uh to see but I I think it's important um and this is going to go back to um council member Maloney's uh question um that I missed we have a uh electronic system that captures uh this whole plan examination back and forth and it doesn't as currently and this is where we could improve capture a permit type for security grills it's a construction uh alteration whether it involves a certificate of occupancy or not it's just a construction uh uh set of plans showing what they intend to do uh whether it changed in the occupancy or not so we but we don't we do our security our electronic system currently does not capture uh security grills as a type uh of construction so maybe if we did have that um maybe that would be a trigger um that the RDP would have to check does this involve a security grill and then it that would trigger the plan examination uh to focus on the requirements of the uh of the security grill um so with this new bill I was I should say it is it's a great opportunity because this bill if passed and uh would would be effective only for new installations or changes replacements and so this is an opportunity for us um uh to capture some of that stuff and improve our our um our plan exam process aside from the grills if a new business is opening is there a checklist that DOB or SBS provides the business owners so even if something particular to that plan isn't in there to avoid the back and forth I would say so aside from security grills it could be anything if you have a DOB per examiner in someone's business are they going over with them everything that's needed to open their business.

I'll I'll defer first if I may that that is precisely what we do at NYC best yes yes.

Okay.

Um any idea anyone can answer this how many companies in New York City install security grills.

So as as I chair as I said before the department buildings electronic system does not capture the security grills as a type of construction uh it's a it's a basic renovation type of thing which if we if so we have no way of capturing the information about security because how much is out there how many new replacements how many we just do not have the information on security grills.

But does SBS know how many businesses do that type of business?

No, we don't have that information, Chair.

What I'm trying to understand is if those businesses we're at the very least were notified that this law was being passed.

So if I'm a a uh manufacturer and operator of a security grill business and I'm going out to replace a grill at a business, am I aware this law exists so that I can let the business owner know at that time the requirements that are needed for the right grill to be installed?

While SBS is uh I was gonna I'll just um say that um the mat we this our law puts the the the onus on the building owner to maintain their building in a code compliant manner.

Um it it is it is on the the on the owner uh to make sure that whatever their what their building is just maintained that way, i.e.

secure the grills.

Um so your question regarding I'm I'm sorry I may have lost my train of thought there a little bit, but your question is regarding I'm sorry, could you just repeat that?

So I own a security grill company.

I I install grills.

Someone a new business uh um calls me at the very least.

If I'm doing my work right, I should know or not even I should I'm just assuming I should be aware of what type of grills are permitted.

If SBS or the city of New York knows that I have this type of business, wouldn't I alert those type of businesses that this law is coming into effect?

So if you're going out there doing your business, please install these type of grills.

Because if I'm a business owner, I don't know.

Yes, that's fun you asked because um just today we we became alert to s certain of those uh uh businesses that that install grills that are putting up notices on people's uh storefronts alerting them to the fact that this law is coming.

So they are aware uh whether or not they're honest enough uh prior um to now uh when they were called when when they were called on to install these grills, um and and install uh illegal uh non-compliant we should say grills before that puts the business owner or the owner of the building in jeopardy um of getting a violation for that.

We don't know.

Uh but of course um I know for a fact that these businesses are aware uh a lot of it because a lot of them has reached out to department buildings asking for clarification under on the law.

But that wasn't done prior to 2025.

Um I I as I said, I I I don't I cannot say how much, but I know there were because um in preparation for this and and before uh when we started ramping up our outreach, I did some searches on especially on the internet and I found very uh very very old outreach um f flyers or stuff from security grid companies um that were it noticing owners of this very same thing that I just mentioned.

I'm gonna end with this.

Um provided that local law intro 910 goes into effect.

What's the plan moving forward?

How will we let businesses know?

I'm sorry.

I mean, I think as outlined in the bill in close partnership with DOB, uh DCWP and any other agency you mentioned.

Let me rephrase.

How will we do it better this time?

Chair, I think I have acknowledged you to uh the fact that we could improve and um you know, with this um new um bill which which will put less of a burden, but we're gonna along the same things that we have done and and and also look at ways in which we can improve the notification of these plans and stuff that comes to us.

Um thankfully this bill does not retro will not if passed, does not impose a retroactive requirement.

Uh so it's going forward.

So we have we we're gonna be focused um using uh the same uh so uh social media outreach we're gonna be doing uh the same uh uh type of other service notices and construction advisory revise those and put those out and work with our partners here at SBS to put that information out.

But in addition to that, I'm going to go back to the development folks and see how we can improve our uh these notices to our on plan exam to make sure that we are actually make mention we're making mention uh regardless of whether the security grill issue comes up or not that this is a new business and have you do you know it does this involve just ask the question if it's not explicitly in the plans we can ask the question and let them make them aware of that I cannot tell you how quickly we can do that but we'll aggressively pursue that I'll bring that back.

Thank you.

Commissioner I mean in addition to uh outreach with DOB would love to partner with you other council members make sure we're in the community getting the word out um I I think um one of the impressive uh pieces of this administration is the ability on social to to generate attention um so we certainly leverage that and make sure people are aware.

I will say this a lot of businesses particularly in my 21st council district are not online.

They're not on social media and English is not their first language.

So we do have to get creative and even I'd say old school door to door um like direct outreach to a lot of these businesses and I think it really starts not for nothing um SBS with DOB because when these businesses are opening and have to pass inspections I think that's a perfect opportunity to say this is what's coming down the pike this is what you need to be successful.

Chair I I I just want to say we do want to work with you as you've just brought up a good point also because with this new bill we're gonna have to revise our construction advisory and that's in that's a printed piece of paper and that we can use or we could work with your um your team to kind of distribute those to our to you to those businesses especially that's affected by it.

But I think it's most important uh to the most important information that needs to get out to businesses is that they need to pull a permit to replace or install these new grills the so if if they know that and do not go the the the route of putting the stuff in without a permit um then they at least they we have a better chance of being advised of the of the of the requirements of the grill um going forward if it if it's if this bill is passed which is the going forward approach so um we will we will work with you or whoever's SBS especially uh to get a printed advisory construction advisor notice out um stating exactly what needs to be done but a permit needs a permit needs to be pulled for these and every people need to be aware of it because there's also additional consequences for not having a permit for doing a work without a permit uh in addition to the this the uh the uh visibility issue and will they apply through DOB for this permit?

Yes.

And how long any idea how long it's gonna take once they apply?

Oh a permit is uh com uh uh plans has to be um has to be uh submitted to us it's I can tell you now for if it's just a secure to grill of frontage it may be i easy right it's a quick one two three online with the uh with the applicant and approval could be a week um and then permitting depending on how quick quickly but if it's elaborate uh type of set uh renovation or necessarily occupancies involved it could extend and it all depends really honestly between the competence of the RDP and knowledge of the uh of the owner who is hiring them to make sure that they're getting the right information to us yes how many permits were applied for between twenty ten and twenty twenty five and then how many have been applied for this year.

Yeah so we don't know specifically about from 2010.

Okay.

We have no I I I'm not prepared to answer that I can get back to you.

How many have been applied for this year?

Um, Lauren Janavero, Department of buildings.

Um, we can we don't have those numbers for you right now, but if if you could follow up with us, we'll provide what numbers we have.

Okay, that'd be great.

Are you talking about permits in general?

Like uh No, because the law is supposed to go into effect in less than a month.

So I'm curious how many businesses actually applied to get their grill replaced.

So, as for security grills, we don't actually have a permit specifically for security grills, depending on the type of permit, um, or security grill, excuse me.

Some security grills won't actually need a permit to be installed.

If you're replacing in kind, that's a situation where it would never come to us, so we would never know if that security grill.

So, for specifically for security grills, we do not have those numbers.

Okay.

If you want numbers and permits, that kind of stuff.

We can get it for you if you ask.

So, what were we talking about a permit for just now?

I thought the permit was for grills.

Okay.

Non-existing.

In some situations, we do not need permits.

And I don't think I do get sworn in.

I was about to say we need to swear you in.

Apparently, hold it.

Manager at the mic, pull up a chair.

It will be brief.

Do you affirm to tell the truth the whole truth and nothing but the truth before this committee and to respond honestly to council member questions?

I do.

Thank you.

You may be getting ready.

So to clarify.

So to clarify for me, we just said there is a permit needed for replacing a gate.

There may be a permit needed.

It is not always a permit that is needed.

Uh, but if it's a new security grill, most likely a permit will be applied for as part of the overall building instruction.

Correct me if I'm not sure.

So if I have a grill on my place now, I don't have to repl apply for a permit to get a new grill.

According to this bill.

Okay.

Right, but they may have required a permit before they've installed it, right?

Right?

Well, we don't know.

Okay.

Let's go back to the bill of 2009.

Okay.

Did you need to apply for a permit to install a new grill?

You've always had to apply the requirement.

Yeah, and it's a construction permit.

It's not a security grill permit, it's a construction permit.

How many construction permits specifically for I understand what you're saying?

I'm sure okay.

I'm just making sure.

Um, we do not clarify on the permits if it's for a construction grill or not, but permits are just for alterations or alterations that affect the CL.

So there's no like little check box.

Four.

Okay.

Yeah.

Okay.

If you can get back to us, that would be great.

Sure.

I don't believe we collect those numbers, but we can double check.

Well, one of my council members didn't mention that her district has done well to comply.

So I'm curious from Borough to borrow who was aware who actually were able to do it.

And that was kind of something that our colleagues at SBS might be able to suss out a little bit better because we don't have direct contact with the businesses.

Oh right.

Well, that is all the questions I have for this panel.

Thank you very much.

Thank you, Chair.

Thank you, Chair.

Okay.

Oh, just as a okay.

I now open the hearing for public testimony.

I remind members of the public that this is a government proceeding and that decorum shall be observed at all times.

As such, members of the public shall remain silent at all times.

The witness table is is reserved for people who wish to testify.

No video recording or photography is allowed from the witness table.

Further, members of the public may not present audio or video recordings as testimony, but may submit transcripts of such recordings to the surgeon at arms for inclusion in the hearing record.

If you wish to speak at today's hearing, please fill out an appearance card with the sergeant in arms and wait to be recognized.

When recognized, you will be have two minutes to speak on today's topic.

Introduction 799 and resolution 328 from Council Member Salam, introduction 910 from Councilmember Stevens, and Councilmember Swong's preconsidered introduction.

If you have a written statement or additional written testimony you wish to submit for the record, please provide a copy of that testimony to the sergeant at arms.

You may also email written testimony to testimony at council.nyc.gov within seventy-two hours of the closing of this hearing.

Audio and video recordings will not be accepted, but in-person panelists, please come up to the table once your name has been called.

I will now call the first group.

Matthew Bauer, Mark Caserta, and Joanna Talenteri.

Good afternoon.

You may now begin.

Good afternoon, Chair Thomas Henry and members of the Committee on Small Business.

My name is Matt Bauer, and I'm testifying on behalf of the New York City Bid Association, where I serve as the co-chair of our regular Tory reform working group, also president of the Madison Avenue Bid in Manhattan.

As you know, the bid association represents all 78 of the city's business improvement districts, serves nearly 300 miles of commercial corridors, including approximately 100,000 businesses, and invests more than 200 million back to our communities in all five boroughs.

We're very grateful that this committee is holding uh this hearing.

Uh uh the New York Association greatly appreciates the council's efforts to support small business owners through intro 9-10.

Uh so many businesses along our shopping districts do not have the resources to replace their gates, nor do they know all the requirements to do so with the new visibility requirements.

Um we very much appreciate intro 9-10's provisions to expand outreach to the small business community.

However, we have significant concerns about how the bill is currently drafted.

Uh, after speaking with council staff, we appreciate that intro 9-10 aims to focus on replacement gates as opposed to forcing existing gates to be compliant.

However, that remains unclear in the legislation as is.

While intro 910 removes the July 1, 2026 enforcement trigger date for the 7% transparency requirement under the both the administrative and building codes, it does not establish a new effective trigger effective or trigger date for compliance.

As a result, upon enactment of intro 9 10, all newly installed security gates will be required to meet this transparency standard, and all existing security grills that do not meet the standard will be considered noncompliant and would need to be replaced with fines imposed unless the business corrects the grill within 90 days or the owner can establish an affirmative defense.

The result is that potentially thousands of existing grills may still be noncompliant, and the bill does not leave any time for additional education and outreach before the requirements take effect.

We are uh including specific language uh in our written submission, uh, but we encourage the council to consider language changes to make it clear that visibility requirements will only apply to replacement security guilds moving forward and uh think about further delaying the effective day of the requirement to allow for more education and outreach, including education and outreach about the requirement to actually file for a permit uh with the department of buildings to install a security grill.

So we thanks so much for the opportunity to testify and for all the efforts of the council to support small business.

Thank you.

Good afternoon.

My name is Mark Caserta.

I'm serve as vice president of small business support at the Brooklyn Chamber of Commerce.

Uh thank you for the opportunity to testify and uh in support of intro 910.

I want to begin by thanking the 34 council members and counting for uh signing on to this legislation.

And uh also for thank the uh Department of Buildings for not enforcing local law 75 while these hearings are proceeding.

Um I'm gonna have the same position as the rest of the panel members here, so I want to go to um some recommendations and then quick comments on the other bills.

Um I give you my written testimony.

Um, so on one of the recommendations, uh, one of the things I'm gonna say increase uh education and outreach.

So through our small business resource network, we continue to see newly installed role gates that do not comply with local law seventy-five.

This suggests that awareness of the law has not adequately reached property owners, business operators, installers, and the real estate professionals.

The Department of Building should prioritize education and outreach to ensure stakeholders clearly understand when and how compliance is required.

They may actually need more time than intro 910 is providing.

Two, improve compliance among installers.

Whether due to a lack of awareness or insufficient oversight, installers should not be placing non-compliant role gates on storefronts 17 years after local law 75 was enacted.

If the city intends to prohibit newly installed opaque roll gates, it must ensure that installers are fully informed of the requirements and consider additional permitting or enforcement mechanisms to prevent future violations.

And then just number three is a you know we were supporting uh Matt's clarification from the the bid association.

Um I just want to add um I was listening to the discussion about local uh intro 799.

There was a question about what to do with if a business is affected by construction, but also may have bad credit.

Uh and one of the things that the the Brooklyn Chamber of Commerce has a CDFI, it's called uh Brooklyn, um so anyway, so we we have a CDFI and um we are able to uh give character-based loans to small business owners.

Um, and it's something to be looked into.

Basically, they have to get a letter of support from the um community board or like a pastor or something like that, and that may help out with it with a loan uh when the credit is bad.

And then just quickly on the um council member Zhuang, um I just want to say yes, please to that bill.

Thank you.

Thank you.

Can you hear me?

Thank you.

Good afternoon, good afternoon committee.

Um I want to th extend my thanks for um hearing us today, um, and choosing to educate rather than penalize 30% of our 520 micro businesses in Parks Low.

I'm Joanna Tallant, I'm the executive director of the Parts Little Fifth Avenue bid.

As a director for many years, I see firsthand that our micro businesses are hurting between the shifting economic pressures, a horrific winter we've just been through.

Um, and these micro businesses run on very thin margins, as the chair said earlier.

They are our neighbors and they are not big corporations.

So when a gate's replaced, two thousand to fifteen thousand, we're hearing on our avenue alone, just to avoid city fines.

You're asking these microbusinesses to do the impossible and potentially increasing vacancies and turnovers on our avenue.

While the Parts Lake Fifth Avenue bid would ultimately like to see law local law 75 repealed entirely, we firmly support intro 910 because it removes the looming July the first penalties and pivots to an education first model.

However, to ensure this legislation actually achieves its goals, we urge the Council address three critical issues.

Hold gate installers accountable.

Because of a lack of education and accountability, roll down gate companies continue to install non-compliant gates on Fifth Avenue as recently as six months ago.

The Department of Buildings must educate these installers and consider a permitting or enforcement mechanism so the burden doesn't fall entirely on the business owner.

Number two, extend the education timeline, as others have spoken up about a six-month window just isn't long enough to educate all the micro businesses across the city and clarify the bill's language as Matt at the bid from the bid association also pointed out.

So thank you for the opportunity to testify.

And the Parts of Fifth Avenue Bid stands ready to partner with City Hall to lead educational outreach to our merchants.

Appreciate that.

I do have a quick question for the panelists.

When were you all made aware that this law was coming into effect?

Oh, I have a great answer for that.

I learned from a business on our avenue that was approached by a roller gate company saying that they must change their roller gate to be compliant, and that was um at the end of last summer that it's a uh I learned from Joanna about six months ago, so yeah.

Okay.

So our bids in uh chambers weren't notified as well.

No, uh, but three or four months ago, the Department of Buildings asked whether we would use our small business resource network to go door to door with them.

Okay, to educate the public.

And look, I I could have said yes, but I said no because I said, but I think we need to change this bill.

Okay.

Not go out and tell them about it.

Okay.

Fair enough.

Thank you.

This panel is excused.

Thank you.

Our next panel, Andrew Ridge, Andrea Tan, and Lisa Soren.

Okay.

Okay.

Did you just hand him a packet?

Yes.

All we need one in one simple little packet.

Thank you.

Andrew, you may begin.

Thank you, Chair.

My name's Andrew Ridgie.

I am the executive director of the New York City Hospitality Alliance.

We represent thousands of restaurants, bars, and nightclubs across the five boroughs.

I've submitted some detailed testimony, but I will hit on these bills in some few quick points.

The first one, which was mentioned before concerning the security uh grill requirements.

Great bill, in the sense that we're very happy you're addressing this issue.

However, uh, it seems as drafted, if we're reading it correctly, would actually apply to far too few many businesses, essentially those that had grills installed before uh 2011.

Uh, it would provide education for businesses that installed them afterwards.

We don't think that's sufficient.

We would love to see all businesses that have installed grills it prior to today's date, but also prior to say, let's say July 1st, 2028, um, to be grandfathered in.

And then over the next two years, the city could conduct outreach, make sure businesses have the information so when they are installing or reinstalling grills, they do with um compliant ones.

Uh, and there could even be a conversation whether or not those specific ones going to your point about the flexibility of businesses should be the required standard.

I think another point that was made is important.

Uh, the companies that are installing these grills should have some sort of responsibility and liability.

If they're installing things, businesses are relying on them to tell them what those standards are.

They shouldn't um just get off scot-free if they install something that's not in compliance with city law.

Um, so those are the big issues I'd want to say on those, but long phase in for laws are good because you can educate businesses, but long phase ends without any education for small businesses is not good and kind of defeats the whole point.

So thank you.

Um the other bills, uh, the roadway construction small business support fund.

We absolutely support that.

We would like to see it expanded to disruptions from utilities and perhaps MTA.

It's not just city agencies that cause the disruptions.

So we think um related to MTA or utility work, uh, that should be included for the businesses that would be eligible.

Um, the tax credit as well, we support, and then finally the accelerating, the opening of new businesses.

I work very closely.

This is going back to the Bloomberg administration when they created the new business acceleration team.

There's a lot of insights, it was a great program.

It sped up the process of opening up new businesses, but there's a lot of things within there about cross-training inspectors that are doing these inspections, giving them authority to make sure they can actually make decisions and advance um permits and licenses forward.

Um, I know I'm at time, but we're happy to have a more detailed conversation about all that.

Thank you.

Thank you, Lisa.

Chair Thomas Henry and members of the small business community.

My name is Lisa Sorn, and I am the president of the Bronx Chamber of Commerce.

We are dedicated to supporting and advocating for small businesses across our borough, especially our New York's microbusinesses.

Thank you to the council for the continuous engagement and collaboration with the small business community on issues that impact affordability, stability, and growth.

I am submitting testimony in support of intro 910, intro 799, and intro T 2026-25.

Regarding 910, I first want to extend my thanks to Councilwoman Althea Stevens.

After I brought this issue to her attention, she immediately took action.

For many small businesses in the Bronx, safety and security is a tangible and ongoing concern.

Security grills have long served as a basic and necessary form of protection from theft, unlawful entry, property damage, etc.

Losses that many small business owners cannot recover without significant financial strain.

However, compliance with local law 75 presents a significant cost burden to our small businesses, especially in the Bronx.

With the July 2026 deadline rapidly approaching, these extra costs arrive at a time when raising rents, utilities, operational costs, economic uncertainty, gravely threaten the stability of our businesses, and the cost of repair or replacement may jeopardize these businesses' ability to keep their doors open by rethinking the city's approach to implementing local law 75.

Intro 910 removes one of the many financial burdens facing our small businesses today.

Intro 910 addresses this by promoting compliance through communication rather than punishment, which is important for small businesses with limited administrative capacity.

This will ensures that chambers of commerce, business improvement districts, community organizations, and small businesses receive clear information, regulations, requirements, potential penalties, and available financial assistance programs.

More broadly, the Bronx Chamber of Commerce would like to voice full support on the full legislation package being heard here today, which work together to reflect a foundational understanding that small business needs, clear communication, tangible support, and consistent collaboration with elected officials.

Every dollar wasted on unnecessary regulatory compliance issues caused by administrative confusion is the detriment to the small business owners trying to expand their livelihood.

Thank you for the opportunity to testify and for your ongoing commitment to supporting workers and small businesses across our city.

Thank you.

Next.

Good afternoon, Chair.

Thomas Henry, thanks for the opportunity to testify.

My name is Andrea Tan.

I'm the supervising attorney with a community development project at the Legal Aid Society.

We provide free transactional legal services to entrepreneurs and nonprofit organizations across New York City.

Many of them are first-time operators and immigrant business owners.

I'm here to testify in support of the uh Red Tape Relief Act, but before I do, I just want to say that we'll use every we'll do everything in our power to communicate to our clients, small business owners about the local loss of any five, so they're aware of it.

So we support the Red Tape Relief Act because it addresses the problem that we see all the time.

We have clients paying rents per month on spaces that they cannot use while they're waiting for permits, inspections, and agency approvals.

But please know that many of the entrepreneurs who would benefit uh most from these uh program are not English speakers.

Uh, the bill requires an online application for enrollment.

Um, but does not include language access requirements, and we just encourage the council to make clear that the portal and the program materials must be accessible in the multiple languages, uh, consistent with the city obligations under local law 30.

Um, one thing that is not entirely clear from the bill is what coordination will look like in practice.

Uh, the bill talks about coordinating inspections and plan reviews, but provides little detail about how the program will operate.

For example, will the businesses have a dedicated point of contact?

Will agencies share information between each other, or will there be a process for resolving delays involving multiple agencies?

So any additional clarity on how it will function would be helpful.

Um, we saw this issue firsthand with a Daker client in the Bronx who was still working through the licensing process when an inspection led to a corrective action that took significant advocacy from our office.

So, a coordinated program that gives agencies visibility into where a business is in the process uh could have prevented situations like this.

We also want to point out that some delays um are outside the business owners' control.

For example, changing the use of the certificate of occupancy requires landlord uh cooperation.

So it's worth noting that when you're helping businesses to know that some delays are out of their control.

And finally, just want to encourage the council to clarify if nonprofit and community organizations will be eligible for this programs as well.

Uh, thank you for the opportunity to testify and uh looking forward to the implementation of the program.

Thank you for your testimony.

This panel is not excused.

We will now turn to virtual panelists.

For virtual panelists, once your name is called, a member of our staff will unmute you, and the sergeant in arms will set the timer and give you the go-ahead to begin.

Please wait for the sergeant to announce that you may begin before delivering your testimony.

Now I will call on our first panelist.

Pedro Suarez.

Time starts now.

Good afternoon, Chair Thomas Henry and the council members of the Committee on Small Business.

My name is Pedro Suarez, and I'm the executive director of the Third Avenue Business Improvement District in the South Bronx neighborhoods of Melrose and Notthaven, which fall primarily into Bronx Council District 17 and 8.

The Third Avenue bid represents over 300 storefronts, and it is the oldest commercial district in the Bronx and one of the city's most heavily trafficked areas serving a major transportation hub.

I testify today in support of all bills being considered today, but more specifically to comment on intro uh 0910-2026 regarding local law 75 of 2009 concerning security grills.

While I support the original law's intention and goals, outreach to businesses over the past 15 plus years has been insufficient to ensure compliance by July 2026.

Additionally, many of our local businesses simply lack the capital to install a security grill within the next month, as this equipment can only cost 10 to 20,000 dollars or more, depending on the size of the storefront.

I estimate that 30 to 50% of the businesses in my district are not currently compliant.

While the original law is well-intentioned, we must ensure that small businesses continue to thrive in the post-COVID world, especially since concerns remain regarding store fund vacancy rates, as recently reported by the New York City controller's office.

Additionally, I encourage the city to work closely with vendors that manufacture and install security grills to ensure that any security grills sold to New York City businesses comply with the law.

I also urge transparency regarding how enforcement will determine compliance with the 70% visibility requirements.

Additionally, as a former city employee, I know there are robust ways to notify businesses of new legislation.

For example, when DSNY published new recycling rules several years ago, it used extensive data to send visible mailers to most commercial properties, and DSNY met with the chambers of commerce and Biz to disseminate the information to businesses with enough notice.

Additionally, a very small team of three to five individuals conducted thousands of site visits over 12 months to educate businesses.

I encourage DOB to implement similar strategies or partner with other agencies to ensure the information reaches businesses.

We've been working hard to strengthen the corridor, supported by the New York City Department of Small Business Services and the release of our recent commercial district needs assessment.

Thank you for considering my testimony today in support of our efforts.

I look forward to continue working with the city on strengthening our commercial corridor in service of New Yorkers.

Thank you.

Thank you for your testimony.

Next up, Nurse Basile.

Time starts now.

Do we have Narcis?

Okay.

Narges.

Basile.

Okay, we are going to move on to Jessica Walker.

Time starts now.

Good afternoon.

I'm Jessica Walker, president and CEO at the Manhattan Chamber of Commerce, representing 125,000 businesses across the borough.

I'll be brief because these four items share one idea.

When the city's own actions raise the cost of doing business, the city should help carry it, not add to it.

Start with construction.

Intro 799 and resolution 328 recognizes simple fact.

When the city tears up a street for 30, 60, 90 days, the storefront behind the scaffolding pays for it.

Foot traffic disappears, but rent doesn't.

A support fund and a tax credit won't make the business whole, but they help tremendously to keep the doors open until the construction ends.

We support both.

And we'd urge the committee to treat the 14-day disbursement standard in 799 as a floor, not an aspiration.

Relief that arrives next year doesn't save a business that closes this year.

The Red Tape Relief Act is also critical.

Coordinated inspections mean a new business opens in months, not years.

Every week a space sits dark is a week of rent with no revenue coming in.

This is the cheapest economic development initiative the city can do.

And we strongly support it.

Finally, intro 910.

The 70% grill mandate was certainly well intentioned, and we understand the safety implications, but it's now a fine waiting to be issued.

Repealing it on existing storefronts while keeping the standard on replacement is the right balance.

But pair it with real educational outreach.

We also support the amendments suggested by our colleagues at the Brooklyn and Bronx Chambers today to ensure the bill helps as many as as many small businesses as possible.

Our latest report graded current conditions for small businesses as a D minus.

Sorry, a D plus.

These four measures won't fix the grade, but there are four steps in the right direction.

Thank you.

And go next.

Yes, Nixon Four.

Thank you, Jessica.

I'm going to try Nargis Basile.

Time starts now.

Please unmute.

Do we have Nargis Basile?

Welcome back.

Christopher Leon Johnson.

Time starts now.

Yeah, hello, can you hear me?

Yes, we can.

Hello, hello, Chair Henry.

My name is Christopher Leon Johnson.

I fully support intro 910.

But I want to say this right now that local law 75 is nothing but a cash grab.

Not not for the not only for the city agencies.

It's not about a cash grab for those desperate security group companies that I do anything to line their pockets up.

And well, I'll say this right now that as a chair of the committee, Mrs.

Henry, uh need to work with the mayor administration and a deputy mayor of operations, uh Mrs.

Curson, and a deputy mayor for economic justice, Mrs.

Julie Sue, to make it where that um the mayor introduces an executive order um suspending local law 75 for the for the time being.

Um, and I think that should happen way more because I know the city has suspended um the enforcement, but you know, who you don't know who's the lobbyist that's gonna try to go to the city, um, New York City Department of Buildings to try to get them to repeal that suspension.

But what I say right now is that uh I I think that local 75 should be repealed itself.

Uh that was a bad bill.

I just found who the sponsor was.

Um, but I don't want to spare that person because that man is dead.

Uh Mr.

Balone's Bologne Jr., he's dead, so I'm not gonna dispare his man's name, but uh, I think that bill uh when it came to city council in the 2000s was more about this lining money for the pockets uh for the Queen's Democratic machine.

Um that I mean, and that's that's probably under Mr.

Mr.

Um Joe Crawley, but uh I'll say this right now that uh Mrs.

Henry used to talk to the mayor's uh Mondani himself and the W mayors and tell them to make an executive order to suspend intro um local law seventy-five.

But I'll say this right now the city council needs to do this bill to really repeal local law 75, and you can do it because the councilman that introduced the bill is no longer here.

And and and remember that council member was working for the Queen's Democratic machine under Joe Crawley, and you could tell that was about line of his pockets too.

That's why LC randoms ran them out the door in 2018.

But I I'll say this right now.

Uh, that's a bad as a disaster.

Thank you so much.

Enjoy that.

Thank you.

Thank you for your testimony.

I'm gonna try one more time.

Nargis Basile.

Time starts now.

Okay, that is all the testimony we have online.

Um, we have now heard from everyone who has signed up to testify.

If we inadvertently missed anyone who would like to testify in person, please visit the sergeant's table and complete a witness slip now.

If we inadvertently miss anyone who would like to testify virtually, please use the raise hand function in the Zoom, and a member of our staff will call you in the order of your raised hand.

Seeing no one else, I would like to note again that written testimony, which will be reviewed in full by committee staff, may be submitted to the record up to 72 hours after the close of this hearing by emailing it to testimony at counsel.nyc.gov.

This hearing is now adjourned.